Is Tractor Supply (TSCO) Halal?

NYSE Consumer Cyclical United States $23.6B
✓ HALAL
Confidence: 95/100
Tractor Supply (TSCO) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 22.5% against the AAOIFI threshold of 30%, Tractor Supply comfortably passes the key financial ratio tests. The company operates in the Consumer Cyclical sector (Specialty Retail), 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 22.5%
/ 30%
0.7%
/ 30%
0.1%
/ 30%
0.0%
/ 5%
✓ HALAL
DJIM 22.5%
/ 33%
0.7%
/ 33%
0.1%
/ 33%
0.0%
/ 5%
✓ HALAL
MSCI 54.4%
/ 33%
1.8%
/ 33%
0.2%
/ 33%
0.0%
/ 5%
✗ NOT HALAL
S&P 22.5%
/ 33%
0.7%
/ 33%
0.1%
/ 33%
0.0%
/ 5%
✓ HALAL
FTSE 54.4%
/ 33%
1.8%
/ 33%
0.2%
/ 50%
0.0%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
21.8
Forward: 18.7
EPS
$2.06
Dividend Yield
214.0%
Payout: 44.7%
P/B Ratio
9.2
EV/EBITDA
15.0
EV: $29.4B
Revenue
$15.5B
Growth: 3.3%
Beta
0.7
Low volatility
Current Ratio
1.3

Profitability

Gross Margin 36.4%
Operating Margin 7.6%
Net Margin 7.1%
Return on Equity (ROE) 45.2%
Return on Assets (ROA) 8.8%

Cash Flow & Balance Sheet

Operating Cash Flow$1.6B
Free Cash Flow$740M
Total Debt$5.9B
Debt-to-Equity230.2
Current Ratio1.3
Total Assets$10.9B

Price & Trading

Last Close$45.89
50-Day MA$51.22
200-Day MA$54.57
Avg Volume6.9M
Beta0.7
52-Week Range
$44.44
$63.99

About Tractor Supply (TSCO)

CEO
Mr. Harry A. Lawton III
Employees
26,000
Sector
Consumer Cyclical
Industry
Specialty Retail
Country
United States
Exchange
NYSE
Market Cap
$23.6B
Currency
USD

Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company provides various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; companion animal products, such as food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It offers its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, JobSmart, and Impeckable brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.

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Frequently Asked Questions

Is Tractor Supply (TSCO) halal to invest in?

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

Tractor Supply's debt ratio is 22.5% 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 54.4%.

What are Tractor Supply's key financial metrics?

Tractor Supply has a market capitalization of $23.6B, trailing P/E ratio of 21.8, and revenue of $15.5B. The company maintains a gross margin of 36.4% and a net margin of 7.1%. Return on equity stands at 45.2%.

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.