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MSCI vs FTSE vs S&P-style financial screening
The methods can produce different financial results because they use different denominators and thresholds. None of these numerical results alone determines whether a company’s business activity is permissible.
MSCI-style
Our primary new-inclusion, total-assets reproduction tests debt, cash plus interest-bearing securities, and receivables plus cash against 30% thresholds.
FTSE/Yasaar-style
The asset-based numerical proxy tests debt and cash/interest-bearing items below 33.333%, and receivables plus cash below 50%.
S&P-style leverage
The independent leverage reconstruction tests debt divided by 36-month average market value of equity below 33%, only with a complete evidence window.
Key financial differences
| Question | MSCI-style | FTSE/Yasaar-style | S&P-style provisional |
|---|---|---|---|
| Denominator | Total assets | Total assets | 36-month average market value of equity |
| Debt threshold | ≤30% for the implemented new-inclusion series | <33.333% | <33% |
| Cash screen | Cash plus interest-bearing securities ≤30% | Cash and interest-bearing items <33.333% | Not part of the published leverage ratio |
| Receivables screen | Receivables plus cash ≤30% | Receivables plus cash <50% | Not part of the published leverage ratio |
| Current availability | Broad, when financial fields exist | Broad, when financial fields exist | Selected U.S. issuers with 36 completed Nasdaq/SEC observations |
Why one stock can pass one method and fail another
A company with a high market valuation but moderate assets may have a low debt-to-market-value ratio and a much higher debt-to-assets ratio. The reverse can also occur. Different thresholds and field definitions can therefore change the numerical outcome without either calculation being a universal religious verdict.
The activity assessment is separate
All three frameworks also require examination of business activities and non-permissible income. A financial pass does not establish that prohibited operating revenue and interest income remain below the relevant limit. HalalStockGuide therefore displays financial criteria and activity evidence as separate states.
How to read a stock page
- Check which financial methods have enough data.
- Read each ratio and its financial period.
- Check the S&P-style 36-month window when available.
- Review the business-activity evidence and unresolved categories.
- Treat “complete result not yet available” as uncertainty, not as failure.
Primary methodology sources
- MSCI Islamic Index Series methodology
- FTSE Yasaar Global Equity Shariah Index Series Ground Rules
- S&P Shariah Indices Methodology, May 2026
Page reviewed 2026-08-03. Methodologies can change; always consult the linked current source and the dated calculation shown on each stock page.