Is Analog Devices (ADI) Halal?

NYSE Technology United States $150.1B
✓ HALAL
Confidence: 95/100
Analog Devices (ADI) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 5.6% against the AAOIFI threshold of 30%, Analog Devices comfortably passes the key financial ratio tests. The company operates in the Technology sector (Semiconductors), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from October 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 5.6%
/ 30%
2.4%
/ 30%
0.9%
/ 30%
0.96%
/ 5%
✓ HALAL
DJIM 5.6%
/ 33%
2.4%
/ 33%
0.9%
/ 33%
0.96%
/ 5%
✓ HALAL
MSCI 18.1%
/ 33%
7.6%
/ 33%
3.0%
/ 33%
0.96%
/ 5%
✓ HALAL
S&P 5.6%
/ 33%
2.4%
/ 33%
0.9%
/ 33%
0.96%
/ 5%
✓ HALAL
FTSE 18.1%
/ 33%
7.6%
/ 33%
3.0%
/ 50%
0.96%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
56.2
Forward: 23.8
EPS
$5.47
Dividend Yield
132.0%
Payout: 72.4%
P/B Ratio
4.4
EV/EBITDA
28.3
EV: $154.7B
Revenue
$11.0B
Growth: 30.4%
Beta
1.0
Average volatility
Current Ratio
1.8

Profitability

Gross Margin 62.8%
Operating Margin 33.1%
Net Margin 23.0%
Return on Equity (ROE) 7.9%
Return on Assets (ROA) 4.5%

Cash Flow & Balance Sheet

Operating Cash Flow$4.8B
Free Cash Flow$4.3B
Total Debt$8.7B
Debt-to-Equity25.8
Current Ratio1.8
Total Assets$48.0B

Price & Trading

Last Close$313.42
50-Day MA$323.26
200-Day MA$266.37
Avg Volume4.0M
Beta1.0
52-Week Range
$158.65
$363.20

About Analog Devices (ADI)

CEO
Mr. Vincent T. Roche
Employees
24,500
Sector
Technology
Industry
Semiconductors
Country
United States
Exchange
NYSE
Market Cap
$150.1B
Currency
USD

Analog Devices, Inc. engages in the design, manufacture, testing, and marketing of integrated circuits (ICs), software, and subsystems products in the United States, rest of North and South America, Europe, Japan, China, and rest of Asia. It provides data converter products, which translate real-world analog signals into digital data, as well as translates digital data into analog signals; power management and reference products for power conversion, driver monitoring, sequencing, and energy management applications in the automotive, communications, industrial, and consumer markets; and power ICs that include performance, integration, and software design simulation tools for accurate power supply designs. The company also offers amplifiers to condition analog signals; and radio frequency and microwave ICs to support cellular infrastructure; and micro-electro-mechanical systems technology solutions, including accelerometers used to sense acceleration, gyroscopes for sense rotation, inertial measurement units to sense multiple degrees of freedom, and broadband switches for radio and instrument systems, as well as isolators. In addition, it provides digital signal processing and system products for numeric calculations. The company serves clients in the industrial, automotive, consumer, instrumentation, aerospace, defense and healthcare, and communications markets through a direct sales force, third-party distributors, and independent sales representatives, as well as online. The company was incorporated in 1965 and is headquartered in Wilmington, Massachusetts.

Purification Calculator

As a halal stock with 0.96% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Analog Devices (ADI) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Analog Devices 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 Analog Devices's debt ratio?

Analog Devices's debt ratio is 5.6% 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 18.1%.

Does Analog Devices require dividend purification?

Yes, Analog Devices has an impermissible income ratio of 0.96%, which means 0.96% 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 Analog Devices's key financial metrics?

Analog Devices has a market capitalization of $150.1B, trailing P/E ratio of 56.2, and revenue of $11.0B. The company maintains a gross margin of 62.8% and a net margin of 23.0%. 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.