Is ABB (ABBN) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 7.5% / 30% | 5.5% / 30% | 5.9% / 30% | 0.61% / 5% | ✓ HALAL |
| DJIM | 7.5% / 33% | 5.5% / 33% | 5.9% / 33% | 0.61% / 5% | ✓ HALAL |
| MSCI | 20.3% / 33% | 14.8% / 33% | 16.0% / 33% | 0.61% / 5% | ✓ HALAL |
| S&P | 7.5% / 33% | 5.5% / 33% | 5.9% / 33% | 0.61% / 5% | ✓ HALAL |
| FTSE | 20.3% / 33% | 14.8% / 33% | 16.0% / 50% | 0.61% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 41.1% | |
| Operating Margin | 16.8% | |
| Net Margin | 14.2% | |
| Return on Equity (ROE) | 29.4% | |
| Return on Assets (ROA) | 8.7% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $5.5B |
| Free Cash Flow | $4.5B |
| Total Debt | $9.1B |
| Debt-to-Equity | 55.5 |
| Current Ratio | 1.6 |
| Total Assets | $44.9B |
Price & Trading
| Last Close | CHF 64.64 |
| 50-Day MA | CHF 66.66 |
| 200-Day MA | CHF 58.22 |
| Avg Volume | 2.7M |
| Beta | 0.9 |
|
52-Week Range
CHF 37.25
| |
About ABB (ABBN)
ABB Ltd provides electrification, motion, and automation solutions and products for customers in utilities, industry and transport, and infrastructure in Europe, the Americas, Asia, the Middle East, and Africa. The company operates through Electrification, Motion, and Automation segments. Its Electrification segment offers renewable power solutions, modular substation packages, distribution automation products, switchboards and panelboards, switchgears, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. The company's Motion segment designs, manufactures, and sells drives, motors, generators, and traction converters that are driving the low-carbon future for industries, cities, infrastructure, and transportation. The company's Automation segment offers industry-specific, integrated automation, electrification and digital solutions, as well as lifecycle services for the process, hybrid and marine industries. This segment also provides control technologies; process, machine and factory automation; industrial software; advanced analytics; sensing and measurement technology; and marine propulsion systems; services such as remote monitoring, preventive maintenance, asset performance management, emission monitoring and cybersecurity. It serves oil, gas, renewables, chemicals, mining, metals, cement, pulp and paper, pharmaceuticals, battery manufacturing, food and beverage, space, power generation, water, marine, and ports industries. The company was founded in 1883 and is headquartered in Zurich, Switzerland.
Purification Calculator
As a halal stock with 0.61% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ABB (ABBN) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ABB 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 ABB's debt ratio?
ABB's debt ratio is 7.5% 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 20.3%.
Does ABB require dividend purification?
Yes, ABB has an impermissible income ratio of 0.61%, which means 0.61% 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 ABB's key financial metrics?
ABB has a market capitalization of $114.7B, trailing P/E ratio of 32.1, and revenue of $33.2B. The company maintains a gross margin of 41.1% and a net margin of 14.2%. Return on equity stands at 29.4%.
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.