Is Alcoa Corp (AA) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 18.2% / 30% | 7.4% / 30% | 8.0% / 30% | 3.22% / 5% | ✓ HALAL |
| DJIM | 18.2% / 33% | 7.4% / 33% | 8.0% / 33% | 3.22% / 5% | ✓ HALAL |
| MSCI | 20.0% / 33% | 8.1% / 33% | 8.8% / 33% | 3.22% / 5% | ✓ HALAL |
| S&P | 18.2% / 33% | 7.4% / 33% | 8.0% / 33% | 3.22% / 5% | ✓ HALAL |
| FTSE | 20.0% / 33% | 8.1% / 33% | 8.8% / 50% | 3.22% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 17.9% | |
| Operating Margin | 13.6% | |
| Net Margin | 9.0% | |
| Return on Equity (ROE) | 19.7% | |
| Return on Assets (ROA) | 5.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.2B |
| Free Cash Flow | $567M |
| Total Debt | $2.7B |
| Debt-to-Equity | 44.5 |
| Current Ratio | 1.4 |
| Total Assets | $16.1B |
Price & Trading
| Last Close | $57.60 |
| 50-Day MA | $60.96 |
| 200-Day MA | $42.97 |
| Avg Volume | 7.6M |
| Beta | 1.8 |
|
52-Week Range
$21.53
| |
About Alcoa Corp (AA)
Alcoa Corporation, together with its subsidiaries, engages in the bauxite mining, alumina refining, aluminum production, and energy generation business in Australia, Brazil, Canada, Iceland, Norway, Spain, the United States, and internationally. The company operates through two segments: Alumina and Aluminum. It operates bauxite and other aluminous ores mining and processes bauxite into alumina for sale to aluminum smelter customers and customers who process it into industrial chemical products through supply contracts to third parties, as well as aluminum smelting and casting businesses. The company also offers aluminium powder and scrap and primary aluminum in the form of commodity grade ingot and value-add ingot to customers that produce products for transportation, building and construction, packaging, wire, and other industrial markets.In addition, it provides energy that generates and sells electricity in the wholesale market to traders, large industrial consumers, distribution companies, and other generation companies. The company was formerly known as Alcoa Upstream Corporation and changed its name to Alcoa Corporation in May 2016. The company was founded in 1886 and is headquartered in Pittsburgh, Pennsylvania.
Purification Calculator
As a halal stock with 3.22% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Alcoa Corp (AA) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Alcoa Corp 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 Alcoa Corp's debt ratio?
Alcoa Corp's debt ratio is 18.2% 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 20.0%.
Does Alcoa Corp require dividend purification?
Yes, Alcoa Corp has an impermissible income ratio of 3.22%, which means 3.22% 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 Alcoa Corp's key financial metrics?
Alcoa Corp has a market capitalization of $15.4B, trailing P/E ratio of 13.4, and revenue of $12.8B. The company maintains a gross margin of 17.9% and a net margin of 9.0%. Return on equity stands at 19.7%.
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.