Is FLEX LTD. (FLEX) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 18.7% / 30% | 10.3% / 30% | 19.4% / 30% | 0.24% / 5% | ✓ HALAL |
| DJIM | 18.7% / 33% | 10.3% / 33% | 19.4% / 33% | 0.24% / 5% | ✓ HALAL |
| MSCI | 22.6% / 33% | 12.5% / 33% | 23.3% / 33% | 0.24% / 5% | ✓ HALAL |
| S&P | 18.7% / 33% | 10.3% / 33% | 19.4% / 33% | 0.24% / 5% | ✓ HALAL |
| FTSE | 22.6% / 33% | 12.5% / 33% | 23.3% / 50% | 0.24% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 9.3% | |
| Operating Margin | 5.7% | |
| Net Margin | 3.2% | |
| Return on Equity (ROE) | 16.9% | |
| Return on Assets (ROA) | 4.5% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.5B |
| Free Cash Flow | $1.1B |
| Total Debt | $4.1B |
| Debt-to-Equity | 98.0 |
| Current Ratio | 1.4 |
| Total Assets | $18.4B |
Price & Trading
| Last Close | $64.76 |
| 50-Day MA | $64.28 |
| 200-Day MA | $58.67 |
| Avg Volume | 3.6M |
| Beta | 1.2 |
|
52-Week Range
$25.11
| |
About FLEX LTD. (FLEX)
Flex Ltd. provides technology innovation, supply chain, and manufacturing solutions to data center, communications, enterprise, consumer, automotive, industrial, healthcare, industrial, and power industries. The company operates through two segments, Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). The FAS segment offers flexible supply and manufacturing system comprising communications, enterprise, and cloud solution, which includes data, edge, and communications infrastructure; lifestyle solution, including appliances, floorcare, smart living, HVAC, and power tools; and consumer devices, such as mobile and high velocity consumer devices. Its FRS segment provides complex ramps with specialized production models and critical environments, which comprise industrial solutions, including industrial devices, capital equipment, renewables, and critical and embedded power solutions; automotive solutions, such as compute platforms, power electronics, motion, and interface; and health solutions comprising medical devices, medical equipment, and drug delivery. It also offers various services, including design and engineering, such as product design and engineering resources that provide design services, product development, and systems integration services and solutions; supply chain comprising manufacturing, customization, procurement, logistics, and innovative supply chain solutions; manufacturing; and logistics and value-added fulfillment services, including warehousing and vendor managed inventory, omni-channel fulfillment, kitting, configuration, and postponement. It operates in the Americas, Asia, and Europe. The company was formerly known as Flextronics International Ltd. and changed its name to Flex Ltd. in September 2016. Flex Ltd. was founded in 1969 and is headquartered in Austin, Texas.
Purification Calculator
As a halal stock with 0.24% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is FLEX LTD. (FLEX) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), FLEX LTD. 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 FLEX LTD.'s debt ratio?
FLEX LTD.'s debt ratio is 18.7% 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 22.6%.
Does FLEX LTD. require dividend purification?
Yes, FLEX LTD. has an impermissible income ratio of 0.24%, which means 0.24% 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 FLEX LTD.'s key financial metrics?
FLEX LTD. has a market capitalization of $24.0B, trailing P/E ratio of 29.1, and revenue of $25.8B. The company maintains a gross margin of 9.3% and a net margin of 3.2%. Return on equity stands at 16.9%.
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.