Is INTERNATIONAL BUSINESS MACHINES CORP (IBM) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 26.6% / 30% | 5.9% / 30% | 6.8% / 30% | 0.96% / 5% | ✓ HALAL |
| DJIM | 26.6% / 33% | 5.9% / 33% | 6.8% / 33% | 0.96% / 5% | ✓ HALAL |
| MSCI | 42.5% / 33% | 9.5% / 33% | 10.9% / 33% | 0.96% / 5% | ✗ NOT HALAL |
| S&P | 26.6% / 33% | 5.9% / 33% | 6.8% / 33% | 0.96% / 5% | ✓ HALAL |
| FTSE | 42.5% / 33% | 9.5% / 33% | 10.9% / 50% | 0.96% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 58.2% | |
| Operating Margin | 24.8% | |
| Net Margin | 15.7% | |
| Return on Equity (ROE) | 35.2% | |
| Return on Assets (ROA) | 5.4% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $13.2B |
| Free Cash Flow | $11.5B |
| Total Debt | $64.6B |
| Debt-to-Equity | 197.3 |
| Current Ratio | 1.0 |
| Total Assets | $151.9B |
Price & Trading
| Last Close | $241.67 |
| 50-Day MA | $266.17 |
| 200-Day MA | $278.32 |
| Avg Volume | 5.8M |
| Beta | 0.7 |
|
52-Week Range
$214.50
| |
About INTERNATIONAL BUSINESS MACHINES CORP (IBM)
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers hybrid cloud and AI platforms that allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment delivers strategy and technology services and intelligent operations, providing business transformation, technology implementation, managed services, application modernization, and AI-powered solutions. The Infrastructure segment provides on-premises and cloud-based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. Its Financing segment offers client and commercial financing, and facilitates IBM clients' acquisition of hardware, software, and services. It has strategic partnerships with various companies, including hyperscalers, service providers, global system integrators, and software and hardware vendors that include Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. Additionally, the company operate a data streaming platform. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.
Purification Calculator
As a halal stock with 0.96% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is INTERNATIONAL BUSINESS MACHINES CORP (IBM) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), INTERNATIONAL BUSINESS MACHINES CORP 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 INTERNATIONAL BUSINESS MACHINES CORP's debt ratio?
INTERNATIONAL BUSINESS MACHINES CORP's debt ratio is 26.6% 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 42.5%.
Does INTERNATIONAL BUSINESS MACHINES CORP require dividend purification?
Yes, INTERNATIONAL BUSINESS MACHINES CORP has an impermissible income ratio of 0.96%, which means 0.96% 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 INTERNATIONAL BUSINESS MACHINES CORP's key financial metrics?
INTERNATIONAL BUSINESS MACHINES CORP has a market capitalization of $221.8B, trailing P/E ratio of 21.2, and revenue of $67.5B. The company maintains a gross margin of 58.2% and a net margin of 15.7%. Return on equity stands at 35.2%.
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.