Is LIQUIDITY SERVICES INC (LQDT) Halal?
Shariah Screening — 5 Standards
Based on financial data from September 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 1.4% / 30% | 18.7% / 30% | 1.3% / 30% | 0.92% / 5% | ✓ HALAL |
| DJIM | 1.4% / 33% | 18.7% / 33% | 1.3% / 33% | 0.92% / 5% | ✓ HALAL |
| MSCI | 3.7% / 33% | 49.5% / 33% | 3.4% / 33% | 0.92% / 5% | ✗ NOT HALAL |
| S&P | 1.4% / 33% | 18.7% / 33% | 1.3% / 33% | 0.92% / 5% | ✓ HALAL |
| FTSE | 3.7% / 33% | 49.5% / 33% | 3.4% / 50% | 0.92% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 45.4% | |
| Operating Margin | 7.7% | |
| Net Margin | 6.3% | |
| Return on Equity (ROE) | 14.7% | |
| Return on Assets (ROA) | 6.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $67M |
| Free Cash Flow | $59M |
| Total Debt | $14M |
| Debt-to-Equity | 6.4 |
| Current Ratio | 1.5 |
| Total Assets | $375M |
Price & Trading
| Last Close | $29.80 |
| 50-Day MA | $31.15 |
| 200-Day MA | $27.55 |
| Avg Volume | 165K |
| Beta | 1.0 |
|
52-Week Range
$21.67
| |
About LIQUIDITY SERVICES INC (LQDT)
Liquidity Services, Inc. engages in the provision of e-commerce marketplaces, self-directed auction listing tools, and value-added services in the United States and internationally. The company operates through four segments: GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG), and Machinio. Its solutions enable government entities and commercial businesses to sell surplus property and real estate assets through GovDeals, Bid4Assets, and Sierra marketplaces. The company also offers a suite of services, including surplus management, asset valuation, asset sales, marketing, returns management, asset recovery, and ecommerce services; and operates Liquidation.com, a marketplace to sell excess, returned, and overstocked consumer goods. In addition, it operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing, laboratory/medical, and agriculture sectors. Further, the company provides Machinio System service that offers various software tools, such as website hosting, email marketing, and inventory management to equipment sellers. The company offers products for various industries, such as consumer electronics, general merchandise, apparel, scientific equipment, aerospace parts and equipment, technology hardware, real estate, energy equipment, industrial capital assets, heavy equipment, fleet and transportation equipment, and specialty equipment. The company was incorporated in 1999 and is headquartered in Bethesda, Maryland.
Purification Calculator
As a halal stock with 0.92% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is LIQUIDITY SERVICES INC (LQDT) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), LIQUIDITY SERVICES 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 LIQUIDITY SERVICES INC's debt ratio?
LIQUIDITY SERVICES INC's debt ratio is 1.4% 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 3.7%.
Does LIQUIDITY SERVICES INC require dividend purification?
Yes, LIQUIDITY SERVICES INC has an impermissible income ratio of 0.92%, which means 0.92% 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 LIQUIDITY SERVICES INC's key financial metrics?
LIQUIDITY SERVICES INC has a market capitalization of $915M, trailing P/E ratio of 32.1, and revenue of $477M. The company maintains a gross margin of 45.4% and a net margin of 6.3%. Return on equity stands at 14.7%.
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.