Is Rent the Runway, Inc. (RENT) Halal?

NASDAQ Consumer Cyclical United States $157M
✗ NOT HALAL
Confidence: 83/100
Rent the Runway, Inc. (RENT) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 241.0% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. Rent the Runway, Inc. operates in the Consumer Cyclical sector.

Shariah Screening — 5 Standards

Based on financial data from January 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 241.0%
/ 30%
49.0%
/ 30%
0.0%
/ 30%
0.62%
/ 5%
✗ NOT HALAL
DJIM 241.0%
/ 33%
49.0%
/ 33%
0.0%
/ 33%
0.62%
/ 5%
✗ NOT HALAL
MSCI 158.7%
/ 33%
32.3%
/ 33%
0.0%
/ 33%
0.62%
/ 5%
✗ NOT HALAL
S&P 241.0%
/ 33%
49.0%
/ 33%
0.0%
/ 33%
0.62%
/ 5%
✗ NOT HALAL
FTSE 158.7%
/ 33%
32.3%
/ 33%
0.0%
/ 50%
0.62%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
1.6
Forward: -0.3
EPS
$2.88
P/B Ratio
-4.4
EV/EBITDA
-55.1
EV: $309M
Revenue
$306M
Growth: 15.4%
Beta
1.3
High volatility
Current Ratio
1.0

Profitability

Gross Margin 72.3%
Operating Margin -16.8%
Net Margin 3.4%
Return on Assets (ROA) -14.9%

Cash Flow & Balance Sheet

Operating Cash Flow$13M
Free Cash Flow-$41M
Total Debt$381M
Current Ratio1.0
Total Assets$240M

Price & Trading

Last Close$4.83
50-Day MA$5.99
200-Day MA$5.58
Avg Volume99K
Beta1.3
52-Week Range
$3.69
$10.13

About Rent the Runway, Inc. (RENT)

CEO
Ms. Jennifer Y. Hyman
Employees
912
Sector
Consumer Cyclical
Industry
Apparel Retail
Country
United States
Exchange
NASDAQ
Market Cap
$157M
Currency
USD

Rent the Runway, Inc. operates shared designer closet in the United States. The company provides evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is headquartered in Brooklyn, New York.

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Frequently Asked Questions

Is Rent the Runway, Inc. (RENT) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Rent the Runway, Inc. is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Rent the Runway, Inc.'s debt ratio?

Rent the Runway, Inc.'s debt ratio is 241.0% 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 158.7%.

What are Rent the Runway, Inc.'s key financial metrics?

Rent the Runway, Inc. has a market capitalization of $157M, trailing P/E ratio of 1.6, and revenue of $306M. The company maintains a gross margin of 72.3% and a net margin of 3.4%.

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.