Is NETFLIX INC (NFLX) Halal?

NASDAQ Communication Services United States $396.3B
✓ HALAL
Confidence: 95/100
NETFLIX INC (NFLX) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 3.4% against the AAOIFI threshold of 30%, NETFLIX INC comfortably passes the key financial ratio tests. The company operates in the Communication Services sector (Entertainment), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 3.4%
/ 30%
2.2%
/ 30%
0.6%
/ 30%
0.38%
/ 5%
✓ HALAL
DJIM 3.4%
/ 33%
2.2%
/ 33%
0.6%
/ 33%
0.38%
/ 5%
✓ HALAL
MSCI 26.0%
/ 33%
16.3%
/ 33%
4.6%
/ 33%
0.38%
/ 5%
✓ HALAL
S&P 3.4%
/ 33%
2.2%
/ 33%
0.6%
/ 33%
0.38%
/ 5%
✓ HALAL
FTSE 26.0%
/ 33%
16.3%
/ 33%
4.6%
/ 50%
0.38%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
36.9
Forward: 24.2
EPS
$2.53
P/B Ratio
14.8
EV/EBITDA
29.5
EV: $402.4B
Revenue
$45.2B
Growth: 17.6%
Beta
1.7
High volatility
Current Ratio
1.2

Profitability

Gross Margin 48.5%
Operating Margin 24.5%
Net Margin 24.3%
Return on Equity (ROE) 42.8%
Return on Assets (ROA) 15.3%

Cash Flow & Balance Sheet

Operating Cash Flow$10.1B
Free Cash Flow$9.5B
Total Debt$14.5B
Debt-to-Equity63.8
Current Ratio1.2
Total Assets$55.6B

Price & Trading

Last Close$93.32
50-Day MA$87.47
200-Day MA$107.65
Avg Volume48.4M
Beta1.7
52-Week Range
$75.01
$134.12

About NETFLIX INC (NFLX)

CEO
Mr. Theodore A. Sarandos
Employees
16,000
Sector
Communication Services
Industry
Entertainment
Country
United States
Exchange
NASDAQ
Market Cap
$396.3B
Currency
USD

Netflix, Inc. provides entertainment services worldwide. The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.

Purification Calculator

As a halal stock with 0.38% impermissible income, you need to purify your dividends.

Enter your dividends to calculate purification amount

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Frequently Asked Questions

Is NETFLIX INC (NFLX) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), NETFLIX 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 NETFLIX INC's debt ratio?

NETFLIX INC's debt ratio is 3.4% 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 26.0%.

Does NETFLIX INC require dividend purification?

Yes, NETFLIX INC has an impermissible income ratio of 0.38%, which means 0.38% 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 NETFLIX INC's key financial metrics?

NETFLIX INC has a market capitalization of $396.3B, trailing P/E ratio of 36.9, and revenue of $45.2B. The company maintains a gross margin of 48.5% and a net margin of 24.3%. Return on equity stands at 42.8%.

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.