Is Allison Transmission Holdings Inc (ALSN) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 29.7% / 30% | 15.4% / 30% | 3.4% / 30% | 0.43% / 5% | ✓ HALAL |
| DJIM | 29.7% / 33% | 15.4% / 33% | 3.4% / 33% | 0.43% / 5% | ✓ HALAL |
| MSCI | 47.5% / 33% | 24.6% / 33% | 5.5% / 33% | 0.43% / 5% | ✗ NOT HALAL |
| S&P | 29.7% / 33% | 15.4% / 33% | 3.4% / 33% | 0.43% / 5% | ✓ HALAL |
| FTSE | 47.5% / 33% | 24.6% / 33% | 5.5% / 50% | 0.43% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 48.6% | |
| Operating Margin | 27.3% | |
| Net Margin | 20.7% | |
| Return on Equity (ROE) | 35.4% | |
| Return on Assets (ROA) | 10.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $836M |
| Free Cash Flow | $661M |
| Total Debt | $2.9B |
| Debt-to-Equity | 395.9 |
| Current Ratio | 4.9 |
| Total Assets | $6.1B |
Price & Trading
| Last Close | $116.32 |
| 50-Day MA | $115.54 |
| 200-Day MA | $96.22 |
| Avg Volume | 892K |
| Beta | 0.9 |
|
52-Week Range
$76.01
| |
About Allison Transmission Holdings Inc (ALSN)
Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction of off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company also provides its transmissions and electric propulsion solutions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. In addition, it sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its solutions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.
Purification Calculator
As a halal stock with 0.43% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Allison Transmission Holdings Inc (ALSN) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Allison Transmission Holdings 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 Allison Transmission Holdings Inc's debt ratio?
Allison Transmission Holdings Inc's debt ratio is 29.7% 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 47.5%.
Does Allison Transmission Holdings Inc require dividend purification?
Yes, Allison Transmission Holdings Inc has an impermissible income ratio of 0.43%, which means 0.43% 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 Allison Transmission Holdings Inc's key financial metrics?
Allison Transmission Holdings Inc has a market capitalization of $9.5B, trailing P/E ratio of 15.6, and revenue of $3.0B. The company maintains a gross margin of 48.6% and a net margin of 20.7%. Return on equity stands at 35.4%.
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.