Is AAR CORP (AIR) Halal?
Shariah Screening — 5 Standards
Based on financial data from May 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 24.4% / 30% | 2.2% / 30% | 11.5% / 30% | 0.06% / 5% | ✓ HALAL |
| DJIM | 24.4% / 33% | 2.2% / 33% | 11.5% / 33% | 0.06% / 5% | ✓ HALAL |
| MSCI | 36.8% / 33% | 3.4% / 33% | 17.4% / 33% | 0.06% / 5% | ✗ NOT HALAL |
| S&P | 24.4% / 33% | 2.2% / 33% | 11.5% / 33% | 0.06% / 5% | ✓ HALAL |
| FTSE | 36.8% / 33% | 3.4% / 33% | 17.4% / 50% | 0.06% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 19.0% | |
| Operating Margin | 7.6% | |
| Net Margin | 5.5% | |
| Return on Equity (ROE) | 12.1% | |
| Return on Assets (ROA) | 5.6% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $36M |
| Free Cash Flow | $1M |
| Total Debt | $1.0B |
| Debt-to-Equity | 59.6 |
| Current Ratio | 2.7 |
| Total Assets | $2.8B |
Price & Trading
| Last Close | $110.82 |
| 50-Day MA | $110.16 |
| 200-Day MA | $87.01 |
| Avg Volume | 497K |
| Beta | 1.2 |
|
52-Week Range
$46.51
| |
About AAR CORP (AIR)
AAR Corp. provides products and services to commercial aviation, government, and defense markets in North America, Europe, Africa, Asia, and internationally. It operates through four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. The company leases and sells aircraft components and replacement parts; and designs, manufactures, and repairs transportation pallets. The company also provides airframe maintenance services, such as airframe inspection, painting services, line maintenance, airframe modifications, structural repairs, avionics service and installation, exterior, and interior refurbishment services; component repair services, including maintenance, repair, and overhaul services, engine and airframe accessories, and interior refurbishment; and engineering services, such as integration, certification and procurement. In addition, it develops aircraft components and parts; designs proprietary designated engineering representative repairs; and provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating workflows. Further, the company engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services, as well as engineering, design, and system integration services for specialized command and control systems; and flight hour component inventory and repair services. Additionally, it offers containers and shelters for military and humanitarian tactical deployment activities; and shelters, such as stationary and vehicle-mounted applications. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.
Purification Calculator
As a halal stock with 0.06% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is AAR CORP (AIR) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), AAR CORP 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 AAR CORP's debt ratio?
AAR CORP's debt ratio is 24.4% 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 36.8%.
Does AAR CORP require dividend purification?
Yes, AAR CORP has an impermissible income ratio of 0.06%, which means 0.06% 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 AAR CORP's key financial metrics?
AAR CORP has a market capitalization of $4.3B, trailing P/E ratio of 23.6, and revenue of $2.8B. The company maintains a gross margin of 19.0% and a net margin of 5.5%. Return on equity stands at 12.1%.
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.