Is BEST BUY CO INC (BBY) Halal?
Shariah Screening — 5 Standards
Based on financial data from January 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 28.9% / 30% | 11.3% / 30% | 7.5% / 30% | 0.93% / 5% | ✓ HALAL |
| DJIM | 28.9% / 33% | 11.3% / 33% | 7.5% / 33% | 0.93% / 5% | ✓ HALAL |
| MSCI | 27.4% / 33% | 10.7% / 33% | 7.1% / 33% | 0.93% / 5% | ✓ HALAL |
| S&P | 28.9% / 33% | 11.3% / 33% | 7.5% / 33% | 0.93% / 5% | ✓ HALAL |
| FTSE | 27.4% / 33% | 10.7% / 33% | 7.1% / 50% | 0.93% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 22.5% | |
| Operating Margin | 5.0% | |
| Net Margin | 2.6% | |
| Return on Equity (ROE) | 37.0% | |
| Return on Assets (ROA) | 7.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $2.1B |
| Free Cash Flow | $1.4B |
| Total Debt | $4.1B |
| Debt-to-Equity | 139.5 |
| Current Ratio | 1.1 |
| Total Assets | $14.8B |
Price & Trading
| Last Close | $63.21 |
| 50-Day MA | $65.05 |
| 200-Day MA | $71.23 |
| Avg Volume | 4.8M |
| Beta | 1.4 |
|
52-Week Range
$54.99
| |
About BEST BUY CO INC (BBY)
Best Buy Co., Inc. offers technology products and solutions in the United States, Canada, and internationally. The company provides computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters that includes home theater accessories, soundbars, and televisions. It also offers appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, gaming, toys, and virtual reality, as well as hardware and software, and augmented reality glasses and other software products; and other products, such as baby, food and beverage, luggage, and outdoor living products. In addition, the company provides delivery, installation, marketplace commissions, memberships, repair, set-up, technical support, health-related, and warranty-related services. It offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Essentials, Best Buy Health, Best Buy Marketplace, Geek Squad, Imagine That, Insignia, Lively, Jitterbug, My Best Buy, My Best Buy Memberships, Pacific Kitchen, Home, TechLiquidators, and Yardbird brand names, as well as domain names comprising bestbuy.com, lively.com, techliquidators.com, yardbird.com, bestbuy.ca, and techliquidators.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.
Purification Calculator
As a halal stock with 0.93% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is BEST BUY CO INC (BBY) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), BEST BUY CO 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 BEST BUY CO INC's debt ratio?
BEST BUY CO INC's debt ratio is 28.9% 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 27.4%.
Does BEST BUY CO INC require dividend purification?
Yes, BEST BUY CO INC has an impermissible income ratio of 0.93%, which means 0.93% 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 BEST BUY CO INC's key financial metrics?
BEST BUY CO INC has a market capitalization of $13.2B, trailing P/E ratio of 12.5. The company maintains a gross margin of 22.5% and a net margin of 2.6%. Return on equity stands at 37.0%.
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.