Is ALLIANCE RESOURCE PARTNERS LP (ARLP) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 13.6% / 30% | 2.1% / 30% | 3.9% / 30% | 0.13% / 5% | ✓ HALAL |
| DJIM | 13.6% / 33% | 2.1% / 33% | 3.9% / 33% | 0.13% / 5% | ✓ HALAL |
| MSCI | 16.3% / 33% | 2.5% / 33% | 4.6% / 33% | 0.13% / 5% | ✓ HALAL |
| S&P | 13.6% / 33% | 2.1% / 33% | 3.9% / 33% | 0.13% / 5% | ✓ HALAL |
| FTSE | 16.3% / 33% | 2.5% / 33% | 4.6% / 50% | 0.13% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 35.0% | |
| Operating Margin | 17.9% | |
| Net Margin | 14.2% | |
| Return on Equity (ROE) | 17.1% | |
| Return on Assets (ROA) | 8.2% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $651M |
| Free Cash Flow | $380M |
| Total Debt | $465M |
| Debt-to-Equity | 25.2 |
| Current Ratio | 2.1 |
| Total Assets | $2.9B |
Price & Trading
| Last Close | $28.88 |
| 50-Day MA | $26.16 |
| 200-Day MA | $25.06 |
| Avg Volume | 430K |
| Beta | 0.3 |
|
52-Week Range
$22.20
| |
About ALLIANCE RESOURCE PARTNERS LP (ARLP)
Alliance Resource Partners, L.P., a diversified natural resource company, engages in the production and marketing of coal to utilities and industrial users in the United States. The company operates through four segments: Illinois Basin Coal Operations, Appalachia Coal Operations, Oil & Gas Royalties, and Coal Royalties. It produces bituminous coal from its underground mines sold to electric power generation and the steel production customers. The company operates seven underground mining complexes in Illinois, Indiana, Kentucky, Maryland, Pennsylvania, and West Virginia. In addition, it owns and leases oil and gas mineral interests and equity interests; and leases its coal mineral reserves and resources to its mining complexes; and leases land and operates a coal loading terminal on the Ohio River at Mt. Vernon, Indiana. Further, the company offers various mining technology products and services, including data network, communication and tracking systems, mining proximity detection systems, industrial collision avoidance systems, and data and analytics software. It also exports its products. Alliance Resource Partners, L.P. was founded in 1971 and is headquartered in Tulsa, Oklahoma.
Purification Calculator
As a halal stock with 0.13% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is ALLIANCE RESOURCE PARTNERS LP (ARLP) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), ALLIANCE RESOURCE PARTNERS LP 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 ALLIANCE RESOURCE PARTNERS LP's debt ratio?
ALLIANCE RESOURCE PARTNERS LP's debt ratio is 13.6% 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 16.3%.
Does ALLIANCE RESOURCE PARTNERS LP require dividend purification?
Yes, ALLIANCE RESOURCE PARTNERS LP has an impermissible income ratio of 0.13%, which means 0.13% 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 ALLIANCE RESOURCE PARTNERS LP's key financial metrics?
ALLIANCE RESOURCE PARTNERS LP has a market capitalization of $3.7B, trailing P/E ratio of 12.1, and revenue of $2.2B. The company maintains a gross margin of 35.0% and a net margin of 14.2%. Return on equity stands at 17.1%.
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.