Is Novartis (NOVN) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 15.0% / 30% | 4.9% / 30% | 4.6% / 30% | 0.66% / 5% | ✓ HALAL |
| DJIM | 15.0% / 33% | 4.9% / 33% | 4.6% / 33% | 0.66% / 5% | ✓ HALAL |
| MSCI | 31.9% / 33% | 10.4% / 33% | 9.9% / 33% | 0.66% / 5% | ✓ HALAL |
| S&P | 15.0% / 33% | 4.9% / 33% | 4.6% / 33% | 0.66% / 5% | ✓ HALAL |
| FTSE | 31.9% / 33% | 10.4% / 33% | 9.9% / 50% | 0.66% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 76.0% | |
| Operating Margin | 27.8% | |
| Net Margin | 24.7% | |
| Return on Equity (ROE) | 30.8% | |
| Return on Assets (ROA) | 11.1% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $19.1B |
| Free Cash Flow | $15.2B |
| Total Debt | $35.4B |
| Debt-to-Equity | 76.2 |
| Current Ratio | 1.1 |
| Total Assets | $110.9B |
Price & Trading
| Last Close | CHF 119.52 |
| 50-Day MA | CHF 121.34 |
| 200-Day MA | CHF 106.88 |
| Avg Volume | 3.4M |
| Beta | 0.5 |
|
52-Week Range
CHF 81.10
| |
About Novartis (NOVN)
Novartis AG researches, develops, manufactures, distributes, markets, and sells pharmaceutical medicines in Switzerland and internationally. The company offers Entresto, an angiotensin receptorneprilysin inhibitor to treat symptomatic chronic heart failure with reduced ejection fraction (HFrEF); Cosentyx to treat plaque psoriasis, pso riatic arthritis, ankylosing spondylitis, and nonradiographic axial spondy loarthritis; Kisqali, a selective oral cyclin dependent inhibitor of kinases 4 and 6 (CDK4/6); Promacta/Revolade to treat immune thrombocytopenia (ITP), thrombocytopenia, and patients with severe aplastic anemia (SAA); Tafinlar+Mekinist, an oral combination therapy to treat patients with certain types of cancers; and Jakavi for the treatment of myelofibrosis, polycythemia vera, and acute or chronic graftversushost disease (GvHD). It also provides Tasigna to treat philadelphia chromosomepositive chronic myeloid leukemia in the chronic and/or accelerated phase; Xolair for the treatment of allergic asthma and nasal polyps or severe chronic rhinosi nusitis with nasal polyps; Ilaris to treat fever syndromes, Still's disease, and acute gouty arthritis; Pluvicto to treat prostatespecific membrane anti genpositive metastatic castrationresistant prostate cancer; Sandostatin SC and Sandostatin LAR to treat acromegaly carcinoid tumors and other types of functional gastro intestinal and pancreatic neuroendocrine tumors; Zolgensma for the treatment of genetic root cause of spinal muscular atrophy; Lucentis; Leqvio to reduce LDL cholesterol; Lutathera; Scemblix; and Fabhalta. The company focuses on therapeutic areas, such as cardiovascular, renal and metabolic, immunology, neuroscience, oncology, and hematology. It has a license and collaboration agreement with Alnylam Pharmaceuticals, Inc. to develop, manufacture, and commercialize Leqvio (inclisiran), a therapy to reduce LDL cholesterol. Novartis AG was incorporated in 1996 and is headquartered in Basel, Switzerland.
Purification Calculator
As a halal stock with 0.66% impermissible income, you need to purify your dividends.
Related Halal Stocks in Healthcare
Frequently Asked Questions
Is Novartis (NOVN) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Novartis 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 Novartis's debt ratio?
Novartis's debt ratio is 15.0% 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 31.9%.
Does Novartis require dividend purification?
Yes, Novartis has an impermissible income ratio of 0.66%, which means 0.66% 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 Novartis's key financial metrics?
Novartis has a market capitalization of $227.3B, trailing P/E ratio of 21.0, and revenue of $56.7B. The company maintains a gross margin of 76.0% and a net margin of 24.7%. Return on equity stands at 30.8%.
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.