Is LABCORP HOLDINGS INC. (LH) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 29.2% / 30% | 2.4% / 30% | 10.1% / 30% | 1.32% / 5% | ✓ HALAL |
| DJIM | 29.2% / 33% | 2.4% / 33% | 10.1% / 33% | 1.32% / 5% | ✓ HALAL |
| MSCI | 35.5% / 33% | 2.9% / 33% | 12.3% / 33% | 1.32% / 5% | ✗ NOT HALAL |
| S&P | 29.2% / 33% | 2.4% / 33% | 10.1% / 33% | 1.32% / 5% | ✓ HALAL |
| FTSE | 35.5% / 33% | 2.9% / 33% | 12.3% / 50% | 1.32% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 28.8% | |
| Operating Margin | 10.6% | |
| Net Margin | 6.3% | |
| Return on Equity (ROE) | 10.5% | |
| Return on Assets (ROA) | 5.1% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.6B |
| Free Cash Flow | $1.2B |
| Total Debt | $6.5B |
| Debt-to-Equity | 75.6 |
| Current Ratio | 1.4 |
| Total Assets | $18.4B |
Price & Trading
| Last Close | $268.38 |
| 50-Day MA | $273.91 |
| 200-Day MA | $267.62 |
| Avg Volume | 687K |
| Beta | 1.0 |
|
52-Week Range
$209.38
| |
About LABCORP HOLDINGS INC. (LH)
Labcorp Holdings Inc. provides laboratory services. It operates through two segments, Diagnostics Laboratories and Biopharma Laboratory Services. The company offers various tests, such as blood chemistry analyses, urinalyses, blood cell counts, thyroid tests, PAP tests, hemoglobin A1C, PSA, tests for sexually transmitted diseases, vitamin D testing, microbiology cultures and procedures, and alcohol and other substance abuse tests. It also provides specialty testing services comprising gene-based and esoteric testing; advanced tests target specific diseases; services related to anatomic pathology/oncology, cardiovascular disease, coagulation, diagnostic genetics, endocrinology, infectious disease, women's health, pharmacogenetics, parentage and donor testing, occupational testing services, medical drug monitoring services, chronic disease programs, and kidney stone prevention tests; and health and wellness services to employers and managed care organizations. In addition, the company offers digital pathology solutions, a pathology platforms that support the digitization, centralized review, and sharing of pathology slides; provider and payer digital platforms, an online applications for providers, MCOs, and ACOs; online and mobile applications that enable patients to check offerings, schedule PSC visits, check-in upon PSC arrival, complete documentation, access tests and test results, and manage their accounts; and Generative AI-enabled Test Selection, a generative AI-enabled tool. It serves clients, third party, medicare/medicaid, patients, pharmaceutical, biotechnology, medical device, diagnostic companies, and CROs. The company was founded in 1995 and is headquartered in Burlington, North Carolina.
Purification Calculator
As a halal stock with 1.32% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is LABCORP HOLDINGS INC. (LH) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), LABCORP HOLDINGS 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 LABCORP HOLDINGS INC.'s debt ratio?
LABCORP HOLDINGS INC.'s debt ratio is 29.2% 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 35.5%.
Does LABCORP HOLDINGS INC. require dividend purification?
Yes, LABCORP HOLDINGS INC. has an impermissible income ratio of 1.32%, which means 1.32% 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 LABCORP HOLDINGS INC.'s key financial metrics?
LABCORP HOLDINGS INC. has a market capitalization of $21.9B, trailing P/E ratio of 25.3, and revenue of $14.0B. The company maintains a gross margin of 28.8% and a net margin of 6.3%. Return on equity stands at 10.5%.
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.