Is MICROSOFT CORP (MSFT) Halal?
Shariah Screening — 5 Standards
Based on financial data from June 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 2.0% / 30% | 3.1% / 30% | 2.3% / 30% | 0.94% / 5% | ✓ HALAL |
| DJIM | 2.0% / 33% | 3.1% / 33% | 2.3% / 33% | 0.94% / 5% | ✓ HALAL |
| MSCI | 9.8% / 33% | 15.3% / 33% | 11.3% / 33% | 0.94% / 5% | ✓ HALAL |
| S&P | 2.0% / 33% | 3.1% / 33% | 2.3% / 33% | 0.94% / 5% | ✓ HALAL |
| FTSE | 9.8% / 33% | 15.3% / 33% | 11.3% / 50% | 0.94% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 68.6% | |
| Operating Margin | 47.1% | |
| Net Margin | 39.0% | |
| Return on Equity (ROE) | 34.4% | |
| Return on Assets (ROA) | 14.9% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $136.2B |
| Free Cash Flow | $71.6B |
| Total Debt | $60.6B |
| Debt-to-Equity | 31.5 |
| Current Ratio | 1.4 |
| Total Assets | $619.0B |
Price & Trading
| Last Close | $365.97 |
| 50-Day MA | $410.47 |
| 200-Day MA | $479.08 |
| Avg Volume | 34.2M |
| Beta | 1.1 |
|
52-Week Range
$344.79
| |
About MICROSOFT CORP (MSFT)
Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial, enterprise mobility + security, windows commercial, power BI, exchange, sharepoint, Microsoft teams, security and compliance, and copilot; Microsoft 365 commercial products, such as Windows commercial on-premises and office licensed services; Microsoft 365 consumer products and cloud services, including Microsoft 365 consumer subscriptions, office licensed on-premises, and other consumer services; LinkedIn; dynamics products and cloud services, such as dynamics 365, cloud-based applications, and on-premises ERP and CRM applications. Its Intelligent Cloud segment provides Server products and cloud services comprising Azure and other cloud services, GitHub, Nuance Healthcare, virtual desktop offerings, and other cloud services; server products, including SQL and windows server, visual studio and system center related client access licenses, and other on-premises offerings; enterprise and partner services, such as enterprise support and nuance professional services, industry solutions, Microsoft partner network, and learning experience. The Personal Computing segment provides windows and devices, such as Windows OEM licensing and devices and surface and PC accessories; gaming services and solutions, such as Xbox hardware, content, and services, first- and third-party content Xbox game pass, subscriptions, and cloud gaming, advertising, and other cloud services; search and news advertising services that includes Bing and Copilot, Microsoft News and Edge, and third-party affiliates. It sells its products through OEMs, distributors, and resellers; and online and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.
Purification Calculator
As a halal stock with 0.94% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is MICROSOFT CORP (MSFT) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), MICROSOFT CORP 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 MICROSOFT CORP's debt ratio?
MICROSOFT CORP's debt ratio is 2.0% 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 9.8%.
Does MICROSOFT CORP require dividend purification?
Yes, MICROSOFT CORP has an impermissible income ratio of 0.94%, which means 0.94% 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 MICROSOFT CORP's key financial metrics?
MICROSOFT CORP has a market capitalization of $2.7T, trailing P/E ratio of 22.3, and revenue of $281.7B. The company maintains a gross margin of 68.6% and a net margin of 39.0%. Return on equity stands at 34.4%.
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.