Is APPLIED OPTOELECTRONICS, INC. (AAOI) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 3.5% / 30% | 2.9% / 30% | 3.4% / 30% | 0.39% / 5% | ✓ HALAL |
| DJIM | 3.5% / 33% | 2.9% / 33% | 3.4% / 33% | 0.39% / 5% | ✓ HALAL |
| MSCI | 21.2% / 33% | 17.6% / 33% | 20.9% / 33% | 0.39% / 5% | ✓ HALAL |
| S&P | 3.5% / 33% | 2.9% / 33% | 3.4% / 33% | 0.39% / 5% | ✓ HALAL |
| FTSE | 21.2% / 33% | 17.6% / 33% | 20.9% / 50% | 0.39% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 30.0% | |
| Operating Margin | -8.6% | |
| Net Margin | -8.4% | |
| Return on Equity (ROE) | -7.9% | |
| Return on Assets (ROA) | -4.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | -$174M |
| Free Cash Flow | -$354M |
| Total Debt | $248M |
| Debt-to-Equity | 33.8 |
| Current Ratio | 2.6 |
| Total Assets | $1.2B |
Price & Trading
| Last Close | $97.48 |
| 50-Day MA | $68.04 |
| 200-Day MA | $37.74 |
| Avg Volume | 7.6M |
| Beta | 3.3 |
|
52-Week Range
$9.71
| |
About APPLIED OPTOELECTRONICS, INC. (AAOI)
Applied Optoelectronics, Inc. engages in the design, manufacture, and sale of fiber-optic networking products in the United States, Taiwan, and China. The company offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, and distribution equipment, as well as amplifiers. It sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.
Purification Calculator
As a halal stock with 0.39% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is APPLIED OPTOELECTRONICS, INC. (AAOI) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), APPLIED OPTOELECTRONICS, INC. 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 APPLIED OPTOELECTRONICS, INC.'s debt ratio?
APPLIED OPTOELECTRONICS, INC.'s debt ratio is 3.5% 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 21.2%.
Does APPLIED OPTOELECTRONICS, INC. require dividend purification?
Yes, APPLIED OPTOELECTRONICS, INC. has an impermissible income ratio of 0.39%, which means 0.39% 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 APPLIED OPTOELECTRONICS, INC.'s key financial metrics?
APPLIED OPTOELECTRONICS, INC. has a market capitalization of $7.6B, and revenue of $456M. The company maintains a gross margin of 30.0% and a net margin of -8.4%. 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.