Is Adidas (ADS) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 21.9% / 30% | 9.7% / 30% | 9.5% / 30% | 0.24% / 5% | ✓ HALAL |
| DJIM | 21.9% / 33% | 9.7% / 33% | 9.5% / 33% | 0.24% / 5% | ✓ HALAL |
| MSCI | 27.0% / 33% | 12.0% / 33% | 11.7% / 33% | 0.24% / 5% | ✓ HALAL |
| S&P | 21.9% / 33% | 9.7% / 33% | 9.5% / 33% | 0.24% / 5% | ✓ HALAL |
| FTSE | 27.0% / 33% | 12.0% / 33% | 11.7% / 50% | 0.24% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 51.6% | |
| Operating Margin | 3.0% | |
| Net Margin | 5.4% | |
| Return on Equity (ROE) | 23.0% | |
| Return on Assets (ROA) | 6.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $751M |
| Free Cash Flow | $274M |
| Total Debt | $5.6B |
| Debt-to-Equity | 90.7 |
| Current Ratio | 1.3 |
| Total Assets | $20.3B |
Price & Trading
| Last Close | EUR 134.10 |
| 50-Day MA | EUR 147.44 |
| 200-Day MA | EUR 169.23 |
| Avg Volume | 802K |
| Beta | 1.2 |
|
52-Week Range
EUR 129.95
| |
About Adidas (ADS)
adidas AG, together with its subsidiaries, designs, develops, produces, and markets a range of athletic and sports lifestyle products in Europe, Greater China, Japan, South Korea, Latin America, North America, and internationally. The company offers footwear and apparel, as well as accessories and gear, including bags, balls, sunglasses, and fitness equipment under the adidas brand; golf footwear and apparel under the adidas Golf brand; and outdoor footwear under the Five Ten brand. It sells its products through its own retail stores, mono-branded franchise stores, shop-in-shops, joint ventures with retail partners, and co-branded stores, as well as through its wholesale and e-commerce platforms. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany.
Purification Calculator
As a halal stock with 0.24% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Adidas (ADS) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Adidas 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 Adidas's debt ratio?
Adidas's debt ratio is 21.9% 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 27.0%.
Does Adidas require dividend purification?
Yes, Adidas has an impermissible income ratio of 0.24%, which means 0.24% 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 Adidas's key financial metrics?
Adidas has a market capitalization of $23.4B, trailing P/E ratio of 17.7, and revenue of $24.8B. The company maintains a gross margin of 51.6% and a net margin of 5.4%. Return on equity stands at 23.0%.
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.