Is Texas Instruments (TXN) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 8.0% / 30% | 2.8% / 30% | 1.1% / 30% | 0.64% / 5% | ✓ HALAL |
| DJIM | 8.0% / 33% | 2.8% / 33% | 1.1% / 33% | 0.64% / 5% | ✓ HALAL |
| MSCI | 40.6% / 33% | 14.1% / 33% | 5.7% / 33% | 0.64% / 5% | ✗ NOT HALAL |
| S&P | 8.0% / 33% | 2.8% / 33% | 1.1% / 33% | 0.64% / 5% | ✓ HALAL |
| FTSE | 40.6% / 33% | 14.1% / 33% | 5.7% / 50% | 0.64% / 5% | ✗ NOT HALAL |
Financial Highlights
Profitability
| Gross Margin | 57.0% | |
| Operating Margin | 34.0% | |
| Net Margin | 28.3% | |
| Return on Equity (ROE) | 30.1% | |
| Return on Assets (ROA) | 10.9% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $7.2B |
| Free Cash Flow | $2.6B |
| Total Debt | $14.0B |
| Debt-to-Equity | 90.8 |
| Current Ratio | 4.4 |
| Total Assets | $34.6B |
Price & Trading
| Last Close | $193.41 |
| 50-Day MA | $205.75 |
| 200-Day MA | $190.32 |
| Avg Volume | 7.6M |
| Beta | 1.0 |
|
52-Week Range
$139.95
| |
About Texas Instruments (TXN)
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, the rest of Asia, Europe, the Middle East, Africa, Japan, and internationally. It operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, multiphase controllers and power stages, and lighting products. This segment also provides signal chain products that sense, condition, and measure real-world signals and convert them into data to be transferred or converted for further processing and control, such as amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers, processors, wireless connectivity, and radar products; and applications processors for specific computing activity. It also provides DLP products primarily for use in projecting high-definition images; calculators; and application-specific integrated circuits. Its products are used in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, calculators, and others. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.
Purification Calculator
As a halal stock with 0.64% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Texas Instruments (TXN) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Texas Instruments 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 Texas Instruments's debt ratio?
Texas Instruments's debt ratio is 8.0% 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 40.6%.
Does Texas Instruments require dividend purification?
Yes, Texas Instruments has an impermissible income ratio of 0.64%, which means 0.64% 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 Texas Instruments's key financial metrics?
Texas Instruments has a market capitalization of $173.3B, trailing P/E ratio of 35.0, and revenue of $17.7B. The company maintains a gross margin of 57.0% and a net margin of 28.3%. Return on equity stands at 30.1%.
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.