Is Rio Tinto (RIO) Halal?

LSE Basic Materials United Kingdom $106.4B
✓ HALAL
Confidence: 95/100
Rio Tinto (RIO) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 21.4% against the AAOIFI threshold of 30%, Rio Tinto comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Other Industrial Metals & Mining), 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 21.4%
/ 30%
6.8%
/ 30%
2.4%
/ 30%
0.12%
/ 5%
✓ HALAL
DJIM 21.4%
/ 33%
6.8%
/ 33%
2.4%
/ 33%
0.12%
/ 5%
✓ HALAL
MSCI 18.4%
/ 33%
5.8%
/ 33%
2.1%
/ 33%
0.12%
/ 5%
✓ HALAL
S&P 21.4%
/ 33%
6.8%
/ 33%
2.4%
/ 33%
0.12%
/ 5%
✓ HALAL
FTSE 18.4%
/ 33%
5.8%
/ 33%
2.1%
/ 50%
0.12%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
14.4
Forward: 10.8
EPS
$4.56
Dividend Yield
456.0%
Payout: 60.5%
P/B Ratio
226.8
EV/EBITDA
6.2
EV: $125.5B
Revenue
$57.6B
Growth: 14.6%
Beta
0.7
Low volatility
Current Ratio
1.4

Profitability

Gross Margin 28.1%
Operating Margin 25.3%
Net Margin 17.3%
Return on Equity (ROE) 16.4%
Return on Assets (ROA) 7.9%

Cash Flow & Balance Sheet

Operating Cash Flow$16.8B
Free Cash Flow$4.5B
Total Debt$23.5B
Debt-to-Equity35.4
Current Ratio1.4
Total Assets$128.1B

Price & Trading

Last CloseGBp 6,430.00
50-Day MAGBp 6,855.68
200-Day MAGBp 5,489.39
Avg Volume3.4M
Beta0.7
52-Week Range
GBp 4,024.50
GBp 7,557.00

About Rio Tinto (RIO)

CEO
Mr. Simon Callas Trott BSc(Hon), GAICD, GradDipFin
Employees
56,890
Sector
Basic Materials
Industry
Other Industrial Metals & Mining
Country
United Kingdom
Exchange
LSE
Market Cap
$106.4B
Currency
GBp

Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company operates through Iron Ore; Aluminium and lithium; and Copper segments. The Iron Ore segment engages in the iron ore mining, and salt and gypsum production in Western Australia. The Aluminum and lithium segment is involved in bauxite mining; alumina refining; and aluminium smelting, and recycling, as well as mining and processing of lithium. The Copper segment engages in mining and refining of copper, gold, silver, molybdenum, and other by-products and exploration activities. It also owns and operates open pit and underground mines; and refineries, smelters, processing plants and power, and shipping facilities. The company was founded in 1873 and is headquartered in London, the United Kingdom.

Purification Calculator

As a halal stock with 0.12% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Rio Tinto (RIO) halal to invest in?

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

Rio Tinto's debt ratio is 21.4% 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 18.4%.

Does Rio Tinto require dividend purification?

Yes, Rio Tinto has an impermissible income ratio of 0.12%, which means 0.12% 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 Rio Tinto's key financial metrics?

Rio Tinto has a market capitalization of $106.4B, trailing P/E ratio of 14.4, and revenue of $57.6B. The company maintains a gross margin of 28.1% and a net margin of 17.3%. Return on equity stands at 16.4%.

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.