Is NIKE, Inc. (NKE) Halal?
Shariah Screening — 5 Standards
Based on financial data from May 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 13.1% / 30% | 10.8% / 30% | 5.6% / 30% | 0.16% / 5% | ✓ HALAL |
| DJIM | 13.1% / 33% | 10.8% / 33% | 5.6% / 33% | 0.16% / 5% | ✓ HALAL |
| MSCI | 30.1% / 33% | 25.0% / 33% | 12.9% / 33% | 0.16% / 5% | ✓ HALAL |
| S&P | 13.1% / 33% | 10.8% / 33% | 5.6% / 33% | 0.16% / 5% | ✓ HALAL |
| FTSE | 30.1% / 33% | 25.0% / 33% | 12.9% / 50% | 0.16% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 41.1% | |
| Operating Margin | 8.1% | |
| Net Margin | 5.4% | |
| Return on Equity (ROE) | 18.0% | |
| Return on Assets (ROA) | 5.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $3.7B |
| Free Cash Flow | $3.3B |
| Total Debt | $11.0B |
| Debt-to-Equity | 80.1 |
| Current Ratio | 2.1 |
| Total Assets | $36.6B |
Price & Trading
| Last Close | $52.07 |
| 50-Day MA | $60.19 |
| 200-Day MA | $66.76 |
| Avg Volume | 16.6M |
| Beta | 1.3 |
|
52-Week Range
$51.20
| |
About NIKE, Inc. (NKE)
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic and casual footwear, apparel, equipment, accessories, and services for men, women, and kids in North America, Europe, the Middle East, Africa, Greater China, the Asia Pacific, and Latin America. The company offers its products under the NIKE, Jordan, Jumpman, Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also provides a line of performance equipment and accessories, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities, as well as various plastic products to other manufacturers; distributes and licenses casual sneakers, apparel, and accessories; and markets apparel with licensed college and professional team and league logos. In addition, the company offers consumer services and experiences, including sport focused events and activations; fitness and activity apps; sport, fitness, and wellness content; and digital services and features in retail stores. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other wholesale accounts through NIKE-owned retail stores, independent distributors, licensees, sales representatives, and digital platforms. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in May 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
Purification Calculator
As a halal stock with 0.16% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is NIKE, Inc. (NKE) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), NIKE, 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 NIKE, Inc.'s debt ratio?
NIKE, Inc.'s debt ratio is 13.1% 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 30.1%.
Does NIKE, Inc. require dividend purification?
Yes, NIKE, Inc. has an impermissible income ratio of 0.16%, which means 0.16% 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 NIKE, Inc.'s key financial metrics?
NIKE, Inc. has a market capitalization of $76.0B, trailing P/E ratio of 30.0, and revenue of $46.3B. The company maintains a gross margin of 41.1% and a net margin of 5.4%. Return on equity stands at 18.0%.
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.