Is ROSS STORES, INC. (ROST) Halal?

NASDAQ Consumer Cyclical United States $68.8B
✓ HALAL
Confidence: 95/100
ROSS STORES, INC. (ROST) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 8.3% against the AAOIFI threshold of 30%, ROSS STORES, INC. comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Apparel Retail), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from January 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 8.3%
/ 30%
6.9%
/ 30%
0.2%
/ 30%
1.11%
/ 5%
✓ HALAL
DJIM 8.3%
/ 33%
6.9%
/ 33%
0.2%
/ 33%
1.11%
/ 5%
✓ HALAL
MSCI 38.1%
/ 33%
31.7%
/ 33%
1.0%
/ 33%
1.11%
/ 5%
✗ NOT HALAL
S&P 8.3%
/ 33%
6.9%
/ 33%
0.2%
/ 33%
1.11%
/ 5%
✓ HALAL
FTSE 38.1%
/ 33%
31.7%
/ 33%
1.0%
/ 50%
1.11%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
32.1
Forward: 26.2
EPS
$6.60
Dividend Yield
84.0%
Payout: 24.5%
P/B Ratio
10.9
EV/EBITDA
21.2
EV: $68.3B
Beta
1.0
Average volatility
Current Ratio
1.6

Profitability

Gross Margin 27.7%
Operating Margin 12.3%
Net Margin 9.4%
Return on Equity (ROE) 36.7%
Return on Assets (ROA) 11.1%

Cash Flow & Balance Sheet

Operating Cash Flow$2.4B
Free Cash Flow$1.6B
Total Debt$5.7B
Debt-to-Equity84.2
Current Ratio1.6
Total Assets$14.9B

Price & Trading

Last Close$214.30
50-Day MA$200.49
200-Day MA$166.14
Avg Volume2.5M
Beta1.0
52-Week Range
$124.07
$217.51

About ROSS STORES, INC. (ROST)

CEO
Mr. James G. Conroy
Sector
Consumer Cyclical
Industry
Apparel Retail
Country
United States
Exchange
NASDAQ
Market Cap
$68.8B
Currency
USD

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brands in the United States. The company offers apparel, accessories, footwear, and home fashions products. It sells its products to middle income households and households with lower to more moderate incomes. Ross Stores, Inc. was incorporated in 1957 and is headquartered in Dublin, California.

Purification Calculator

As a halal stock with 1.11% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is ROSS STORES, INC. (ROST) halal to invest in?

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

ROSS STORES, INC.'s debt ratio is 8.3% 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 38.1%.

Does ROSS STORES, INC. require dividend purification?

Yes, ROSS STORES, INC. has an impermissible income ratio of 1.11%, which means 1.11% 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 ROSS STORES, INC.'s key financial metrics?

ROSS STORES, INC. has a market capitalization of $68.8B, trailing P/E ratio of 32.1. The company maintains a gross margin of 27.7% and a net margin of 9.4%. Return on equity stands at 36.7%.

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.