Is BAE Systems (BA) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 15.7% / 30% | 5.2% / 30% | 2.1% / 30% | N/A | ✓ HALAL |
| DJIM | 15.7% / 33% | 5.2% / 33% | 2.1% / 33% | N/A | ✓ HALAL |
| MSCI | 26.6% / 33% | 8.9% / 33% | 3.6% / 33% | N/A | ✓ HALAL |
| S&P | 15.7% / 33% | 5.2% / 33% | 2.1% / 33% | N/A | ✓ HALAL |
| FTSE | 26.6% / 33% | 8.9% / 33% | 3.6% / 50% | N/A | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 13.2% | |
| Operating Margin | 10.1% | |
| Net Margin | 7.3% | |
| Return on Equity (ROE) | 18.1% | |
| Return on Assets (ROA) | 4.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $3.9B |
| Free Cash Flow | $2.8B |
| Total Debt | $10.2B |
| Debt-to-Equity | 76.7 |
| Current Ratio | 1.0 |
| Total Assets | $38.1B |
Price & Trading
| Last Close | GBp 2,093.00 |
| 50-Day MA | GBp 2,099.37 |
| 200-Day MA | GBp 1,902.74 |
| Avg Volume | 7.1M |
| Beta | 0.0 |
|
52-Week Range
GBp 1,394.00
| |
About BAE Systems (BA)
BAE Systems plc provides defense, aerospace, and security solutions in the United States, the United Kingdom, the Middle East, Australia, Kingdom of Saudi Arabia, Europe, and internationally. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial avionics, and precision guided solutions and communications systems, as well as space electronics, spacecraft, and ground and tactical systems. The Platforms & Services segment manufactures and sells combat vehicles, weapons, and munitions; and offers naval ship repair services, as well as operates and manages two government-owned and contractor-operated ammunition plants. The Air segment develops future combat air systems and falconworks alongside edgewing, and eurofighter and MBDA. The Maritime segment provides maritime and land services, including submarine, ship build, and support programs. The Cyber & Intelligence segment offers cyber security services for national security, central government, and government enterprises. The company was formerly known as British Aerospace plc and changed its name to BAE Systems plc in May 2000. BAE Systems plc was incorporated in 1979 and is headquartered in London, the United Kingdom.
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Frequently Asked Questions
Is BAE Systems (BA) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), BAE Systems 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 BAE Systems's debt ratio?
BAE Systems's debt ratio is 15.7% 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 26.6%.
What are BAE Systems's key financial metrics?
BAE Systems has a market capitalization of $60.3B, trailing P/E ratio of 30.4. The company maintains a gross margin of 13.2% and a net margin of 7.3%. Return on equity stands at 18.1%.
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.