Is ATA Creativity Global (AACG) Halal?

NASDAQ Consumer Defensive China $32M
✗ NOT HALAL
Confidence: 90/100
ATA Creativity Global (AACG) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 114.4% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. ATA Creativity Global operates in the Consumer Defensive sector.

Shariah Screening — 5 Standards

Based on financial data from December 2024

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 114.4%
/ 30%
118.7%
/ 30%
58.1%
/ 30%
0.17%
/ 5%
✗ NOT HALAL
DJIM 114.4%
/ 33%
118.7%
/ 33%
58.1%
/ 33%
0.17%
/ 5%
✗ NOT HALAL
MSCI 7.7%
/ 33%
8.0%
/ 33%
3.9%
/ 33%
0.17%
/ 5%
✓ HALAL
S&P 114.4%
/ 33%
118.7%
/ 33%
58.1%
/ 33%
0.17%
/ 5%
✗ NOT HALAL
FTSE 7.7%
/ 33%
8.0%
/ 33%
3.9%
/ 50%
0.17%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-0.22
P/B Ratio
6.8
EV/EBITDA
-4.9
EV: $24M
Revenue
$268M
Growth: -11.7%
Current Ratio
0.3

Profitability

Gross Margin 50.0%
Operating Margin 12.2%
Net Margin -17.9%
Return on Equity (ROE) -86.1%
Return on Assets (ROA) -4.4%

Cash Flow & Balance Sheet

Operating Cash Flow-$3M
Free Cash Flow-$23M
Total Debt$35M
Debt-to-Equity143.7
Current Ratio0.3
Total Assets$457M

Price & Trading

Last Close$1.01
50-Day MA$0.99
200-Day MA$1.23
Avg Volume15K
52-Week Range
$0.74
$2.58

About ATA Creativity Global (AACG)

CEO
Mr. Xiaofeng Ma
Sector
Consumer Defensive
Industry
Education & Training Services
Country
China
Exchange
NASDAQ
Market Cap
$32M
Currency
USD

ATA Creativity Global, together with its subsidiaries, provides educational services in China and internationally. The company offers portfolio training services, research-based learning services, overseas study counselling services, in-school art classes through cooperation with high schools and training organizations, junior art education, and other educational services to students. It also provides online courses for students. The company provides its services through partnership with sales channels, internet and mobile advertisement, word of mouth referral, and marketing events and activities. The company was formerly known as ATA Inc. and changed its name to ATA Creativity Global in September 2019. ATA Creativity Global was founded in 1999 and is based in Hefei, China.

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Frequently Asked Questions

Is ATA Creativity Global (AACG) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), ATA Creativity Global is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is ATA Creativity Global's debt ratio?

ATA Creativity Global's debt ratio is 114.4% 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 7.7%.

What are ATA Creativity Global's key financial metrics?

ATA Creativity Global has a market capitalization of $32M, and revenue of $268M. The company maintains a gross margin of 50.0% and a net margin of -17.9%. Return on equity stands at -86.1%.

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.