Is AUTOZONE INC (AZO) Halal?
Shariah Screening — 5 Standards
Based on financial data from August 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 20.3% / 30% | 0.4% / 30% | 1.1% / 30% | 0.06% / 5% | ✓ HALAL |
| DJIM | 20.3% / 33% | 0.4% / 33% | 1.1% / 33% | 0.06% / 5% | ✓ HALAL |
| MSCI | 63.5% / 33% | 1.4% / 33% | 3.5% / 33% | 0.06% / 5% | ✗ NOT HALAL |
| S&P | 20.3% / 33% | 0.4% / 33% | 1.1% / 33% | 0.06% / 5% | ✓ HALAL |
| FTSE | 63.5% / 33% | 1.4% / 33% | 3.5% / 50% | 0.06% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 51.9% | |
| Operating Margin | 16.3% | |
| Net Margin | 12.5% | |
| Return on Assets (ROA) | 11.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $3.1B |
| Free Cash Flow | $1.8B |
| Total Debt | $12.3B |
| Current Ratio | 0.9 |
| Total Assets | $19.4B |
Price & Trading
| Last Close | $3,395.97 |
| 50-Day MA | $3,635.87 |
| 200-Day MA | $3,788.83 |
| Avg Volume | 159K |
| Beta | 0.4 |
|
52-Week Range
$3,210.72
| |
About AUTOZONE INC (AZO)
AutoZone, Inc. operates as a retailer and distributor of automotive replacement parts and accessories in the United States, Mexico, and Brazil. The company offers a product line for cars, sport utility vehicles, vans, and light duty trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. It also provides A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, starters and alternators, thermostats, and water pumps, as well as tire repairs. In addition, the company provides maintenance products, such as antifreeze and windshield washer fluids; brake drums, rotors, shoes, and pads; brake and power steering fluids, and oil and fuel additives; oil and transmission fluids; oil, cabin, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers. Further, it offers air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, tools, vehicle entertainment systems, and wash and wax products, as well as towing services. Additionally, the company provides a sales program that offers commercial credit and delivery of parts and other products; sells automotive diagnostic, repair, collision, and shop management information software under the ALLDATA brand through alldata.com; Duralast branded products through duralastparts.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com. AutoZone, Inc. was founded in 1979 and is headquartered in Memphis, Tennessee.
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 AUTOZONE INC (AZO) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), AUTOZONE 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 AUTOZONE INC's debt ratio?
AUTOZONE INC's debt ratio is 20.3% 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 63.5%.
Does AUTOZONE INC require dividend purification?
Yes, AUTOZONE INC 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 AUTOZONE INC's key financial metrics?
AUTOZONE INC has a market capitalization of $55.0B, trailing P/E ratio of 23.3, and revenue of $18.9B. The company maintains a gross margin of 51.9% and a net margin of 12.5%.
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.