Is Eaton Corp plc (ETN) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 7.3% / 30% | 1.5% / 30% | 3.4% / 30% | 0.26% / 5% | ✓ HALAL |
| DJIM | 7.3% / 33% | 1.5% / 33% | 3.4% / 33% | 0.26% / 5% | ✓ HALAL |
| MSCI | 25.6% / 33% | 5.4% / 33% | 12.0% / 33% | 0.26% / 5% | ✓ HALAL |
| S&P | 7.3% / 33% | 1.5% / 33% | 3.4% / 33% | 0.26% / 5% | ✓ HALAL |
| FTSE | 25.6% / 33% | 5.4% / 33% | 12.0% / 50% | 0.26% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 37.8% | |
| Operating Margin | 20.0% | |
| Net Margin | 14.9% | |
| Return on Equity (ROE) | 21.5% | |
| Return on Assets (ROA) | 8.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $4.5B |
| Free Cash Flow | $3.6B |
| Total Debt | $10.5B |
| Debt-to-Equity | 54.9 |
| Current Ratio | 1.3 |
| Total Assets | $41.3B |
Price & Trading
| Last Close | $357.10 |
| 50-Day MA | $361.28 |
| 200-Day MA | $356.78 |
| Avg Volume | 2.9M |
| Beta | 1.2 |
|
52-Week Range
$231.85
| |
About Eaton Corp plc (ETN)
Eaton Corporation plc operates as a power management company in the United States, Canada, Latin America, Europe, and the Asia Pacific. The company operates through Electrical Americas, Electrical Global, Aerospace, Vehicle, and eMobility segments. It offers electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, and power reliability equipment; and hazardous duty electrical equipment, emergency lighting, fire detection, intrinsically safe explosion-proof instrumentation, and structural support systems. It also provides pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; wiring connectors and cables; hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. In addition, the company offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry; voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. The company formerly known as Abeiron Limited. The company was founded in 1911 and is based in Dublin, Ireland.
Purification Calculator
As a halal stock with 0.26% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Eaton Corp plc (ETN) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Eaton Corp plc 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 Eaton Corp plc's debt ratio?
Eaton Corp plc's debt ratio is 7.3% 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 25.6%.
Does Eaton Corp plc require dividend purification?
Yes, Eaton Corp plc has an impermissible income ratio of 0.26%, which means 0.26% 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 Eaton Corp plc's key financial metrics?
Eaton Corp plc has a market capitalization of $138.8B, trailing P/E ratio of 34.3, and revenue of $27.4B. The company maintains a gross margin of 37.8% and a net margin of 14.9%. Return on equity stands at 21.5%.
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.