Is Gaotu Techedu Inc. (GOTU) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 98.1% / 30% | 631.0% / 30% | 29.6% / 30% | 1.55% / 5% | ✗ NOT HALAL |
| DJIM | 98.1% / 33% | 631.0% / 33% | 29.6% / 33% | 1.55% / 5% | ✗ NOT HALAL |
| MSCI | 8.4% / 33% | 54.3% / 33% | 2.5% / 33% | 1.55% / 5% | ✗ NOT HALAL |
| S&P | 98.1% / 33% | 631.0% / 33% | 29.6% / 33% | 1.55% / 5% | ✗ NOT HALAL |
| FTSE | 8.4% / 33% | 54.3% / 33% | 2.5% / 50% | 1.55% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 67.4% | |
| Operating Margin | -7.0% | |
| Net Margin | -5.3% | |
| Return on Equity (ROE) | -20.3% | |
| Return on Assets (ROA) | -5.2% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $258M |
| Free Cash Flow | $80M |
| Total Debt | $492M |
| Debt-to-Equity | 46.7 |
| Current Ratio | 0.9 |
| Total Assets | $5.8B |
Price & Trading
| Last Close | $1.88 |
| 50-Day MA | $2.14 |
| 200-Day MA | $2.93 |
| Avg Volume | 432K |
| Beta | 0.6 |
|
52-Week Range
$1.85
| |
About Gaotu Techedu Inc. (GOTU)
Gaotu Techedu Inc., a data-driven education company, provides learning services, educational content, and digitalized learning products in Mainland China. Its learning services include traditional learning services that cover academic subjects, such as mathematics, English, Chinese, physics, chemistry, biology, history, geography and political science; and non-academic tutoring services, including adolescent development, Cambridge English, international competitions and international examinations. It also offers college student and adult education services, comprising admission courses for entrance exams and interviews for postgraduate programs and civil service exams,; exam preparation courses, such as IELTS and TOEFL; consulting services for those pursuing studies abroad, as well as English courses for improving language skills which includes grammar, vocabulary, and speaking; and professional courses for qualification exams, such as teacher certification. In addition, the company offers educational content products, including course outlines, courseware, practice exercises and lesson notes, and reference books, such as Chinese dictionaries and exam question compilations for the college entrance exam; and digitalized learning products, including reading apps for young learners, and AI-based writing assessment tools that offer instant feedback, as well as learning pen and tablet devices. It provides its learning offerings to learners across various age groups from primary school students to adults through online and offline courses, and AI-powered applications. The company was formerly known as GSX Techedu Inc. and changed its name to Gaotu Techedu Inc. in June 2021. Gaotu Techedu Inc. was incorporated in 2014 and is headquartered in Beijing, China.
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Frequently Asked Questions
Is Gaotu Techedu Inc. (GOTU) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Gaotu Techedu Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Gaotu Techedu Inc.'s debt ratio?
Gaotu Techedu Inc.'s debt ratio is 98.1% 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 8.4%.
What are Gaotu Techedu Inc.'s key financial metrics?
Gaotu Techedu Inc. has a market capitalization of $455M. The company maintains a gross margin of 67.4% and a net margin of -5.3%. Return on equity stands at -20.3%.
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.