Is LITHIA MOTORS INC (LAD) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 220.2% / 30% | 6.4% / 30% | 19.6% / 30% | 1.17% / 5% | ✗ NOT HALAL |
| DJIM | 220.2% / 33% | 6.4% / 33% | 19.6% / 33% | 1.17% / 5% | ✗ NOT HALAL |
| MSCI | 59.9% / 33% | 1.7% / 33% | 5.3% / 33% | 1.17% / 5% | ✗ NOT HALAL |
| S&P | 220.2% / 33% | 6.4% / 33% | 19.6% / 33% | 1.17% / 5% | ✗ NOT HALAL |
| FTSE | 59.9% / 33% | 1.7% / 33% | 5.3% / 50% | 1.17% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 15.4% | |
| Operating Margin | 3.9% | |
| Net Margin | 2.2% | |
| Return on Equity (ROE) | 12.4% | |
| Return on Assets (ROA) | 4.2% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $357M |
| Free Cash Flow | $6M |
| Total Debt | $15.5B |
| Debt-to-Equity | 235.2 |
| Current Ratio | 1.2 |
| Total Assets | $25.1B |
Price & Trading
| Last Close | $256.84 |
| 50-Day MA | $292.72 |
| 200-Day MA | $314.55 |
| Avg Volume | 304K |
| Beta | 1.2 |
|
52-Week Range
$239.78
| |
About LITHIA MOTORS INC (LAD)
Lithia Motors, Inc. operates as an automotive retailer in the United States, the United Kingdom, and Canada. The company operates in two segments, Vehicle Operations and Financing Operations. It offers a range of products and services fulfilling the entire vehicle ownership lifecycle, including new and used vehicles, financing and insurance products, and aftersales automotive repair and maintenance services. The company provides its products and services through a network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.
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Frequently Asked Questions
Is LITHIA MOTORS INC (LAD) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), LITHIA MOTORS 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 LITHIA MOTORS INC's debt ratio?
LITHIA MOTORS INC's debt ratio is 220.2% 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 59.9%.
What are LITHIA MOTORS INC's key financial metrics?
LITHIA MOTORS INC has a market capitalization of $5.9B, trailing P/E ratio of 7.8, and revenue of $37.6B. The company maintains a gross margin of 15.4% and a net margin of 2.2%. Return on equity stands at 12.4%.
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.