Is HOME DEPOT, INC. (HD) Halal?
Shariah Screening — 5 Standards
Based on financial data from January 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 17.5% / 30% | 0.5% / 30% | 1.4% / 30% | N/A | ✓ HALAL |
| DJIM | 17.5% / 33% | 0.5% / 33% | 1.4% / 33% | N/A | ✓ HALAL |
| MSCI | 64.8% / 33% | 1.7% / 33% | 5.1% / 33% | N/A | ✗ NOT HALAL |
| S&P | 17.5% / 33% | 0.5% / 33% | 1.4% / 33% | N/A | ✓ HALAL |
| FTSE | 64.8% / 33% | 1.7% / 33% | 5.1% / 50% | N/A | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 33.3% | |
| Operating Margin | 10.1% | |
| Net Margin | 8.6% | |
| Return on Equity (ROE) | 145.5% | |
| Return on Assets (ROA) | 13.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $19.8B |
| Free Cash Flow | $16.3B |
| Total Debt | $62.3B |
| Debt-to-Equity | 514.4 |
| Current Ratio | 1.1 |
| Total Assets | $96.1B |
Price & Trading
| Last Close | $328.43 |
| 50-Day MA | $366.47 |
| 200-Day MA | $374.19 |
| Avg Volume | 4.1M |
| Beta | 1.0 |
|
52-Week Range
$320.26
| |
About HOME DEPOT, INC. (HD)
The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products. The company also offers installation services for flooring, water heaters, baths, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company serves consumers, such as do-it-yourself homeowners and do-it-for-me customers; and professional renovators/remodelers, general contractors, small to medium homebuilders, maintenance professionals, handymen, property managers, building service contractors and specialty tradespeople, such as electricians, landscapers, plumbers, painters, pool contractors, and roofers. It sells its products through websites and its mobile applications, including homedepot.com; homedepot.ca and homedepot.com.mx; blinds.com, justblinds.com, and americanblinds.com for custom window coverings; thecompanystore.com, an online site for textiles and décor products; hdsupply.com for maintenance, repair, and operations products and related services; and srsdistribution.com, heritagelandscapesupplygroup.com, and heritagepoolsupplygroup.com for roofing and building materials, landscape, and pool products; and The Home Depot stores. The Home Depot, Inc. was incorporated in 1978 and is headquartered in Atlanta, Georgia.
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Frequently Asked Questions
Is HOME DEPOT, INC. (HD) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), HOME DEPOT, 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 HOME DEPOT, INC.'s debt ratio?
HOME DEPOT, INC.'s debt ratio is 17.5% 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 64.8%.
What are HOME DEPOT, INC.'s key financial metrics?
HOME DEPOT, INC. has a market capitalization of $320.4B, trailing P/E ratio of 22.6. The company maintains a gross margin of 33.3% and a net margin of 8.6%. Return on equity stands at 145.5%.
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.