Is ROKU, INC (ROKU) Halal?

NASDAQ Communication Services United States $12.8B
✓ HALAL
Confidence: 95/100
ROKU, INC (ROKU) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 3.5% against the AAOIFI threshold of 30%, ROKU, 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 3.5%
/ 30%
15.6%
/ 30%
5.9%
/ 30%
2.14%
/ 5%
✓ HALAL
DJIM 3.5%
/ 33%
15.6%
/ 33%
5.9%
/ 33%
2.14%
/ 5%
✓ HALAL
MSCI 11.8%
/ 33%
52.3%
/ 33%
19.8%
/ 33%
2.14%
/ 5%
✗ NOT HALAL
S&P 3.5%
/ 33%
15.6%
/ 33%
5.9%
/ 33%
2.14%
/ 5%
✓ HALAL
FTSE 11.8%
/ 33%
52.3%
/ 33%
19.8%
/ 50%
2.14%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
147.7
Forward: 27.1
EPS
$0.59
P/B Ratio
4.8
EV/EBITDA
39.7
EV: $11.1B
Revenue
$4.7B
Growth: 16.1%
Beta
2.0
High volatility
Current Ratio
2.7

Profitability

Gross Margin 43.8%
Operating Margin 4.5%
Net Margin 1.9%
Return on Equity (ROE) 3.4%
Return on Assets (ROA) -0.0%

Cash Flow & Balance Sheet

Operating Cash Flow$484M
Free Cash Flow$478M
Total Debt$523M
Debt-to-Equity19.7
Current Ratio2.7
Total Assets$4.4B

Price & Trading

Last Close$89.03
50-Day MA$95.25
200-Day MA$96.11
Avg Volume3.5M
Beta2.0
52-Week Range
$52.43
$116.66

About ROKU, INC (ROKU)

CEO
Mr. Anthony J. Wood
Employees
3,600
Sector
Communication Services
Industry
Entertainment
Country
United States
Exchange
NASDAQ
Market Cap
$12.8B
Currency
USD

Roku, Inc., together with its subsidiaries, operates a TV streaming platform in the United States and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others, as well as offers digital advertising services. The company also sells streaming players, Roku-branded TVs, smart home products and services, audio products, and related accessories. Roku, Inc. was incorporated in 2002 and is headquartered in San Jose, California.

Purification Calculator

As a halal stock with 2.14% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is ROKU, INC (ROKU) halal to invest in?

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

ROKU, INC's debt ratio is 3.5% 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 11.8%.

Does ROKU, INC require dividend purification?

Yes, ROKU, INC has an impermissible income ratio of 2.14%, which means 2.14% 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 ROKU, INC's key financial metrics?

ROKU, INC has a market capitalization of $12.8B, trailing P/E ratio of 147.7, and revenue of $4.7B. The company maintains a gross margin of 43.8% and a net margin of 1.9%. Return on equity stands at 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.