Xero (XRO) Financial Ratio Screen

ASX Technology New Zealand AUD 12648M
RATIOS FAIL*
Automated financial screen · activity assessed separately
Xero (XRO) is potentially non-compliant in the automated ratio model. While the debt ratio of 30.0% is acceptable, the cash and interest-bearing securities ratio of 52.2% exceeds the 30% threshold. Xero operates in the Technology sector.

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MSCI new-inclusion financial-ratio snapshot

XRO financial screening at a glance

RATIOS FAIL*Financial ratios shown separately from business review — not a fatwa
Debt ratio
30.0%
Pass vs 30%
Cash ratio
52.2%
Fail vs 30%
Receivables + cash
54.8%
Fail vs 30%
Impermissible income
4.8%
Pass vs 5%

Calculation date: 2026-08-31. Financial period used: March 2025. The ratios are automated proxies inspired by published methodologies; they are not official index determinations.

Independent method comparison

What the available screens say

How MSCI, FTSE and S&P-style screens differ
Request this stock review
MSCI-styleFinancial criteria not metAt least one available ratio exceeds its threshold
FTSE/Yasaar-styleFinancial criteria not metAt least one available ratio exceeds its threshold
S&P-style provisionalNot yet availableRequired denominator or financial data is incomplete
Business activityAssessment pendingFinancial results do not determine business permissibility
Complete screening result: not yet completeA complete result requires both supported financial criteria and adequate activity evidence. This site does not issue a fatwa or official index decision.
Financial periodMarch 2025Calculation date2026-08-31S&P-style historynot availableLast activity reviewnot yet reviewed

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Business activity evidence

Activity assessment in progress

The supplied classification (Software - Application) is only a starting point. Revenue evidence is being assessed before any complete screening conclusion.

Revenue segments: Not yet checked against an SEC annual filing.

Profile description reviewed: Xero Limited, together with its subsidiaries, provides online business solutions for small businesses and their advisors in Australia, New Zealand, the United Kingdom, North America, and internationally. It offers accounting, payroll, payments and other solutions through its Xero platform. The company also provides Planday, an online employee scheduling software; Hubdoc for bills and receipts; Syft, which creates reports, forecasts, dashboards, and consolidations with AI insights; TaxCycle, a tax preparation software for accountants and bookkeepers; and Tickstar, an e-invoicing product. Xero Limited was incorporated in 2006 and is headquartered in Wellington, New Zealand.

Sources to verify: Secondary company profile and classification · Issuer website

A sector label or company description can flag a risk but cannot establish a compliant-revenue percentage. Only sourced segment disclosures may support that calculation.

Published-ratio reproductions (not certifications)

The table shows implemented MSCI and FTSE/Yasaar-style asset-based models plus a provisional S&P-style leverage reconstruction where a complete 36-month denominator exists. These are independent calculations, not official index results or Shariah determinations. See formulas, sources and limitations.

Based on financial data from March 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
MSCI 30.0%
/ 30%
52.2%
/ 30%
54.8%
/ 30%
4.77%
/ 5%
RATIOS FAIL*
FTSE 30.0%
/ 33%
52.2%
/ 33%
54.8%
/ 50%
4.77%
/ 5%
RATIOS FAIL*

Financial Highlights

P/E Ratio
48.9
Forward: 56.9
EPS
$1.49
P/B Ratio
3.0
EV/EBITDA
21.0
EV: $8.2B
Revenue
$1.9B
Growth: 19.9%
Beta
0.7
Low volatility
Current Ratio
2.3

Profitability

Gross Margin 88.8%
Operating Margin 15.7%
Net Margin 11.6%
Return on Equity (ROE) 8.3%
Return on Assets (ROA) 4.3%

Cash Flow & Balance Sheet

Free Cash Flow$478M
Total Debt$1.2B
Debt-to-Equity29.5
Current Ratio2.3
Total Assets$4.1B

Price & Trading

Last CloseAUD 72.40
50-Day MAAUD 83.83
200-Day MAAUD 133.07
Avg Volume896K
Beta0.7
52-Week Range
AUD 71.45
AUD 196.52

Financial data provenance and verification

The displayed fields were imported from yfinance on 2026-03-29 for the financial period March 2025. This is a secondary data feed and can differ from amended or newly filed statements.

Verification rule: check debt, cash, receivables, revenue and interest income against the latest primary filing before relying on an automated ratio.

About Xero (XRO)

CEO
Ms. Sukhinder Singh Cassidy
Employees
4,615
Sector
Technology
Industry
Software - Application
Country
New Zealand
Exchange
ASX
Market Cap (listing currency)
AUD 12648M
Currency
AUD

Xero Limited, together with its subsidiaries, provides online business solutions for small businesses and their advisors in Australia, New Zealand, the United Kingdom, North America, and internationally. It offers accounting, payroll, payments and other solutions through its Xero platform. The company also provides Planday, an online employee scheduling software; Hubdoc for bills and receipts; Syft, which creates reports, forecasts, dashboards, and consolidations with AI insights; TaxCycle, a tax preparation software for accountants and bookkeepers; and Tickstar, an e-invoicing product. Xero Limited was incorporated in 2006 and is headquartered in Wellington, New Zealand.

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Frequently Asked Questions

Is Xero (XRO) halal to invest in?

The current automated result is Financial criteria not met or an activity exclusion was detected. It uses available public financial fields and simplified methodology proxies. It is not a fatwa or an official determination by AAOIFI, DJIM, MSCI, S&P, or FTSE.

What is Xero's debt ratio?

Xero's debt ratio is 30.0% in the MSCI new-inclusion reproduction: total debt divided by total assets, against a 30% threshold. See the methodology page for the official source and limitations.

What are Xero's key financial metrics?

Xero has a market capitalization of AUD 12648M in its listing currency, trailing P/E ratio of 48.9, and revenue of $1.9B. The company maintains a gross margin of 88.8% and a net margin of 11.6%. Return on equity stands at 8.3%.

How often is the screening data updated?

Calculation date: 2026-08-31. Financial period: March 2025. These dates are shown separately because regenerating this page does not refresh the underlying data.

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.