Is Denso (6902) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 12.8% / 30% | 20.1% / 30% | 22.7% / 30% | 1.21% / 5% | ✓ HALAL |
| DJIM | 12.8% / 33% | 20.1% / 33% | 22.7% / 33% | 1.21% / 5% | ✓ HALAL |
| MSCI | 8.6% / 33% | 13.5% / 33% | 15.3% / 33% | 1.21% / 5% | ✓ HALAL |
| S&P | 12.8% / 33% | 20.1% / 33% | 22.7% / 33% | 1.21% / 5% | ✓ HALAL |
| FTSE | 8.6% / 33% | 13.5% / 33% | 15.3% / 50% | 1.21% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 15.6% | |
| Operating Margin | 8.6% | |
| Net Margin | 5.2% | |
| Return on Equity (ROE) | 7.9% | |
| Return on Assets (ROA) | 3.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $758.7B |
| Free Cash Flow | $313.3B |
| Total Debt | $699.4B |
| Debt-to-Equity | 17.6 |
| Current Ratio | 1.9 |
| Total Assets | $8.1T |
Price & Trading
| Last Close | JPY 1,944.50 |
| 50-Day MA | JPY 2,116.03 |
| 200-Day MA | JPY 2,101.32 |
| Avg Volume | 6.9M |
| Beta | 0.6 |
|
52-Week Range
JPY 1,568.50
| |
About Denso (6902)
DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, Rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, control system products, pick up systems, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, plasmacluster ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, the company provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and home energy management system, co2 refrigerant heat-pumps and industrial systems. DENSO Corporation was incorporated in 1949 and is headquartered in Kariya, Japan.
Purification Calculator
As a halal stock with 1.21% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Denso (6902) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Denso is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Denso's debt ratio?
Denso's debt ratio is 12.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 8.6%.
Does Denso require dividend purification?
Yes, Denso has an impermissible income ratio of 1.21%, which means 1.21% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Denso's key financial metrics?
Denso has a market capitalization of $5.3T, trailing P/E ratio of 15.4, and revenue of $7.2T. The company maintains a gross margin of 15.6% and a net margin of 5.2%. Return on equity stands at 7.9%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.