Is Li Auto Inc. (LI) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 93.0% / 30% | 641.6% / 30% | 0.8% / 30% | 1.26% / 5% | ✗ NOT HALAL |
| DJIM | 93.0% / 33% | 641.6% / 33% | 0.8% / 33% | 1.26% / 5% | ✗ NOT HALAL |
| MSCI | 10.1% / 33% | 69.5% / 33% | 0.1% / 33% | 1.26% / 5% | ✗ NOT HALAL |
| S&P | 93.0% / 33% | 641.6% / 33% | 0.8% / 33% | 1.26% / 5% | ✗ NOT HALAL |
| FTSE | 10.1% / 33% | 69.5% / 33% | 0.1% / 50% | 1.26% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 18.7% | |
| Operating Margin | -1.5% | |
| Net Margin | 1.0% | |
| Return on Equity (ROE) | 1.6% | |
| Return on Assets (ROA) | -0.2% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $15.9B |
| Free Cash Flow | $8.2B |
| Total Debt | $16.3B |
| Debt-to-Equity | 24.4 |
| Current Ratio | 1.8 |
| Total Assets | $162.3B |
Price & Trading
| Last Close | $17.58 |
| 50-Day MA | $17.57 |
| 200-Day MA | $21.58 |
| Avg Volume | 3.9M |
| Beta | 0.6 |
|
52-Week Range
$15.71
| |
About Li Auto Inc. (LI)
Li Auto Inc. operates in the energy vehicle market in the People's Republic of China. It designs, develops, manufactures, and sells premium smart electric vehicles. The company's product line comprises multi-purpose vehicles and sport utility vehicles. It offers sales and after sales management, and technology development and corporate management services, as well as manufacturing equipment. The company offers its products through online and offline channels. The company was formerly known as Leading Ideal Inc. and changed its name to Li Auto Inc. in July 2020. Li Auto Inc. was founded in 2015 and is headquartered in Beijing, the People's Republic of China.
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Frequently Asked Questions
Is Li Auto Inc. (LI) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Li Auto 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 Li Auto Inc.'s debt ratio?
Li Auto Inc.'s debt ratio is 93.0% 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 10.1%.
What are Li Auto Inc.'s key financial metrics?
Li Auto Inc. has a market capitalization of $18.0B, trailing P/E ratio of 109.1, and revenue of $144.5B. The company maintains a gross margin of 18.7% and a net margin of 1.0%. Return on equity stands at 1.6%.
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.