Is SMITH & NEPHEW PLC (SNN) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 22.8% / 30% | 4.3% / 30% | 7.3% / 30% | 0.41% / 5% | ✓ HALAL |
| DJIM | 22.8% / 33% | 4.3% / 33% | 7.3% / 33% | 0.41% / 5% | ✓ HALAL |
| MSCI | 32.1% / 33% | 6.0% / 33% | 10.2% / 33% | 0.41% / 5% | ✓ HALAL |
| S&P | 22.8% / 33% | 4.3% / 33% | 7.3% / 33% | 0.41% / 5% | ✓ HALAL |
| FTSE | 32.1% / 33% | 6.0% / 33% | 10.2% / 50% | 0.41% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 68.3% | |
| Operating Margin | 14.0% | |
| Net Margin | 10.1% | |
| Return on Equity (ROE) | 11.8% | |
| Return on Assets (ROA) | 5.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.3B |
| Free Cash Flow | $852M |
| Total Debt | $3.3B |
| Debt-to-Equity | 62.9 |
| Current Ratio | 2.6 |
| Total Assets | $10.5B |
Price & Trading
| Last Close | $31.79 |
| 50-Day MA | $34.24 |
| 200-Day MA | $33.98 |
| Avg Volume | 883K |
| Beta | 0.7 |
|
52-Week Range
$23.91
| |
About SMITH & NEPHEW PLC (SNN)
Smith & Nephew plc, together with its subsidiaries, develops, manufactures, markets, and sells medical devices and services in the United Kingdom, the United States, and internationally. The company operates in three segments: Orthopaedics, Sports Medicine & ENT, and Advanced Wound Management. It offers knee implant products for knee replacement procedures; hip implants for revision procedures; trauma and extremities products that include internal and external devices used in the stabilization of severe fractures and deformity correction procedures; and other reconstruction products. The company also provides sports medicine joint repair products comprise instruments, technologies, and implants to perform minimally invasive surgery, as well as treating soft tissue injuries and degenerative conditions of the shoulder, knee, hip, and small joints. In addition, it provides arthroscopic enabling technologies comprising fluid management equipment for surgical access, cameras, digital image capture, scopes, light sources, and monitors to assist with visualization inside the joints, radio frequency, electromechanical and mechanical tissue resection devices, and hand instruments for removing damaged tissue; and ear, nose, and throat solutions. Further, the company offers advanced wound care products for the treatment and prevention of acute and chronic wounds, leg, diabetic and pressure ulcers, burns, and post-operative wounds; advanced wound bioactives, such as biologics and other bioactive technologies for debridement and dermal repair/regeneration, and regenerative medicine products, including skin, bone graft, and articular cartilage substitutes; and advanced wound devices, such as traditional and single-use negative pressure wound therapy, and hydrosurgery systems. It serves the healthcare providers. Smith & Nephew plc was founded in 1856 and is headquartered in Watford, the United Kingdom.
Purification Calculator
As a halal stock with 0.41% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is SMITH & NEPHEW PLC (SNN) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), SMITH & NEPHEW PLC 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 SMITH & NEPHEW PLC's debt ratio?
SMITH & NEPHEW PLC's debt ratio is 22.8% 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 32.1%.
Does SMITH & NEPHEW PLC require dividend purification?
Yes, SMITH & NEPHEW PLC has an impermissible income ratio of 0.41%, which means 0.41% 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 SMITH & NEPHEW PLC's key financial metrics?
SMITH & NEPHEW PLC has a market capitalization of $13.4B, trailing P/E ratio of 22.1, and revenue of $6.2B. The company maintains a gross margin of 68.3% and a net margin of 10.1%. Return on equity stands at 11.8%.
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.