Is COCA COLA CO (KO) Halal?

NYSE Consumer Defensive United States $325.9B
✓ HALAL
Confidence: 95/100
COCA COLA CO (KO) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 13.7% against the AAOIFI threshold of 30%, COCA COLA CO comfortably passes the key financial ratio tests. The company operates in the Consumer Defensive sector (Beverages - Non-Alcoholic), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 13.7%
/ 30%
4.8%
/ 30%
0.9%
/ 30%
1.64%
/ 5%
✓ HALAL
DJIM 13.7%
/ 33%
4.8%
/ 33%
0.9%
/ 33%
1.64%
/ 5%
✓ HALAL
MSCI 43.4%
/ 33%
15.1%
/ 33%
2.9%
/ 33%
1.64%
/ 5%
✗ NOT HALAL
S&P 13.7%
/ 33%
4.8%
/ 33%
0.9%
/ 33%
1.64%
/ 5%
✓ HALAL
FTSE 43.4%
/ 33%
15.1%
/ 33%
2.9%
/ 50%
1.64%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
24.9
Forward: 21.9
EPS
$3.04
Dividend Yield
272.0%
Payout: 67.1%
P/B Ratio
10.1
EV/EBITDA
22.4
EV: $359.8B
Revenue
$47.9B
Growth: 2.4%
Beta
0.3
Low volatility
Current Ratio
1.5

Profitability

Gross Margin 61.6%
Operating Margin 24.7%
Net Margin 27.3%
Return on Equity (ROE) 43.3%
Return on Assets (ROA) 9.1%

Cash Flow & Balance Sheet

Operating Cash Flow$7.4B
Free Cash Flow$5.3B
Total Debt$45.5B
Debt-to-Equity139.8
Current Ratio1.5
Total Assets$104.8B

Price & Trading

Last Close$74.69
50-Day MA$76.67
200-Day MA$71.20
Avg Volume17.9M
Beta0.3
52-Week Range
$65.35
$82.00

About COCA COLA CO (KO)

CEO
Mr. James Robert B. Quincey
Employees
65,900
Sector
Consumer Defensive
Industry
Beverages - Non-Alcoholic
Country
United States
Exchange
NYSE
Market Cap
$325.9B
Currency
USD

The Coca-Cola Company, a beverage company, manufactures and sells various nonalcoholic beverages in the United States and internationally. The company provides Trademark Coca-Cola, sparkling soft drinks and flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and emerging beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers comprising restaurants and convenience stores. The company sells its products under the Coca-Cola, Diet Coke/Coca-Cola Light, Coca-Cola Zero Sugar, caffeine free Diet Coke, Cherry Coke, Fanta, Sprite, Simply, Fanta Orange, Fanta Zero Orange, Fanta Zero Sugar, Fanta Apple, Sprite Zero Sugar, Simply Orange, Simply Apple, Simply Grapefruit, Fresca, Schweppes, Thums Up, Aquarius, Ayataka, BODYARMOR, Ciel, Costa, Crystal, Dasani, Fuze Tea, Georgia, glacéau smartwater, glacéau vitaminwater, Gold Peak, I LOHAS, Powerade, Topo Chico, Core Power, Del Valle, fairlife, innocent, Maaza, Minute Maid, Minute Maid Pulpy, Santa Clara, and dogadan brands. It operates through a network of independent bottling partners, distributors, wholesalers, and retailers, as well as through bottling and distribution operators. The Coca-Cola Company was founded in 1886 and is headquartered in Atlanta, Georgia.

Purification Calculator

As a halal stock with 1.64% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is COCA COLA CO (KO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), COCA COLA CO 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 COCA COLA CO's debt ratio?

COCA COLA CO's debt ratio is 13.7% 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 43.4%.

Does COCA COLA CO require dividend purification?

Yes, COCA COLA CO has an impermissible income ratio of 1.64%, which means 1.64% 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 COCA COLA CO's key financial metrics?

COCA COLA CO has a market capitalization of $325.9B, trailing P/E ratio of 24.9, and revenue of $47.9B. The company maintains a gross margin of 61.6% and a net margin of 27.3%. Return on equity stands at 43.3%.

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.