Is COLGATE PALMOLIVE CO (CL) Halal?

NYSE Consumer Defensive United States $67.6B
✓ HALAL
Confidence: 95/100
COLGATE PALMOLIVE CO (CL) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 11.4% against the AAOIFI threshold of 30%, COLGATE PALMOLIVE CO comfortably passes the key financial ratio tests. The company operates in the Consumer Defensive sector (Household & Personal Products), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 11.4%
/ 30%
1.7%
/ 30%
2.2%
/ 30%
0.37%
/ 5%
✓ HALAL
DJIM 11.4%
/ 33%
1.7%
/ 33%
2.2%
/ 33%
0.37%
/ 5%
✓ HALAL
MSCI 52.4%
/ 33%
7.9%
/ 33%
10.3%
/ 33%
0.37%
/ 5%
✗ NOT HALAL
S&P 11.4%
/ 33%
1.7%
/ 33%
2.2%
/ 33%
0.37%
/ 5%
✓ HALAL
FTSE 52.4%
/ 33%
7.9%
/ 33%
10.3%
/ 50%
0.37%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
32.0
Forward: 20.3
EPS
$2.63
Dividend Yield
252.0%
Payout: 78.3%
P/B Ratio
1258.1
EV/EBITDA
15.4
EV: $75.0B
Revenue
$20.4B
Growth: 5.8%
Beta
0.3
Low volatility
Current Ratio
0.8

Profitability

Gross Margin 60.1%
Operating Margin 20.4%
Net Margin 10.5%
Return on Equity (ROE) 497.5%
Return on Assets (ROA) 16.4%

Cash Flow & Balance Sheet

Operating Cash Flow$4.2B
Free Cash Flow$3.6B
Total Debt$8.6B
Debt-to-Equity2343.6
Current Ratio0.8
Total Assets$16.3B

Price & Trading

Last Close$84.14
50-Day MA$90.90
200-Day MA$84.53
Avg Volume6.8M
Beta0.3
52-Week Range
$74.55
$99.33

About COLGATE PALMOLIVE CO (CL)

CEO
Mr. Noel R. Wallace
Employees
33,600
Sector
Consumer Defensive
Industry
Household & Personal Products
Country
United States
Exchange
NYSE
Market Cap
$67.6B
Currency
USD

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It operates through two segments: Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under the Colgate, Palmolive, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline, and Suavitel brands to a range of traditional and eCommerce retailers, wholesalers, and distributors, as well as dentists and skin health professionals. It also offers pharmaceutical products for dentists and other oral health professionals. The Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand; and a fresh pet food sold to pet specialty and other retailers in Australia under Prime100 brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.

Purification Calculator

As a halal stock with 0.37% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is COLGATE PALMOLIVE CO (CL) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), COLGATE PALMOLIVE CO 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 COLGATE PALMOLIVE CO's debt ratio?

COLGATE PALMOLIVE CO's debt ratio is 11.4% 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 52.4%.

Does COLGATE PALMOLIVE CO require dividend purification?

Yes, COLGATE PALMOLIVE CO has an impermissible income ratio of 0.37%, which means 0.37% 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 COLGATE PALMOLIVE CO's key financial metrics?

COLGATE PALMOLIVE CO has a market capitalization of $67.6B, trailing P/E ratio of 32.0, and revenue of $20.4B. The company maintains a gross margin of 60.1% and a net margin of 10.5%. Return on equity stands at 497.5%.

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.