Is CUMMINS INC (CMI) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 10.9% / 30% | 4.8% / 30% | 7.8% / 30% | 0.63% / 5% | ✓ HALAL |
| DJIM | 10.9% / 33% | 4.8% / 33% | 7.8% / 33% | 0.63% / 5% | ✓ HALAL |
| MSCI | 23.9% / 33% | 10.6% / 33% | 17.1% / 33% | 0.63% / 5% | ✓ HALAL |
| S&P | 10.9% / 33% | 4.8% / 33% | 7.8% / 33% | 0.63% / 5% | ✓ HALAL |
| FTSE | 23.9% / 33% | 10.6% / 33% | 17.1% / 50% | 0.63% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 25.8% | |
| Operating Margin | 10.9% | |
| Net Margin | 8.4% | |
| Return on Equity (ROE) | 23.9% | |
| Return on Assets (ROA) | 7.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $3.6B |
| Free Cash Flow | $2.4B |
| Total Debt | $8.1B |
| Debt-to-Equity | 60.5 |
| Current Ratio | 1.8 |
| Total Assets | $34.0B |
Price & Trading
| Last Close | $530.00 |
| 50-Day MA | $570.81 |
| 200-Day MA | $460.47 |
| Avg Volume | 927K |
| Beta | 1.1 |
|
52-Week Range
$260.02
| |
About CUMMINS INC (CMI)
Cummins Inc. offers various power solutions worldwide. The company operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. It offers diesel and natural gas-powered engines; and drivetrain systems, including axles, drivelines, brakes, and suspension systems; and on- and off-highway, and other products. The company also provides aftertreatment technology and solutions comprising custom engineering systems and integrated controls, oxidation catalysts, particulate filters, and selective catalytic reduction systems, as well as engineered components, including dosers; turbochargers, fuel systems, and valvetrain technologies; electronic control modules, sensors, and supporting software; and automated manual transmissions, and automatic transmissions for internal combustion engines. In addition, it sells and offers support services power generation systems, high-horsepower engines, and heavy-duty and medium-duty engines; offers application engineering services, custom-designed assemblies, and in-shop and field-based repair services; and retail and wholesale aftermarket parts. Further, the company offers standby and prime power generators, controls, paralleling systems, and transfer switches; turnkey solutions for distributed generation and energy management applications using natural gas, diesel, battery energy storage systems, and newer alternative sustainable fuels; diesel and natural gas high-speed, high-horsepower engines; and A/C generator/alternator products. Additionally, it provides electrified power systems, including batteries, fuel cells, and electric powertrain technologies. It sells its products to original equipment manufacturers, distributors, dealers, and other customers. The company was formerly known as Cummins Engine Company and changed its name to Cummins Inc. in 2001. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
Purification Calculator
As a halal stock with 0.63% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is CUMMINS INC (CMI) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), CUMMINS 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 CUMMINS INC's debt ratio?
CUMMINS INC's debt ratio is 10.9% 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 23.9%.
Does CUMMINS INC require dividend purification?
Yes, CUMMINS INC has an impermissible income ratio of 0.63%, which means 0.63% 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 CUMMINS INC's key financial metrics?
CUMMINS INC has a market capitalization of $72.3B, trailing P/E ratio of 25.5, and revenue of $33.7B. The company maintains a gross margin of 25.8% and a net margin of 8.4%. Return on equity stands at 23.9%.
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.