Is Xero (XRO) Halal?
Shariah Screening — 5 Standards
Based on financial data from March 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 8.0% / 30% | 13.9% / 30% | 0.7% / 30% | 4.77% / 5% | ✓ HALAL |
| DJIM | 8.0% / 33% | 13.9% / 33% | 0.7% / 33% | 4.77% / 5% | ✓ HALAL |
| MSCI | 30.0% / 33% | 52.2% / 33% | 2.6% / 33% | 4.77% / 5% | ✗ NOT HALAL |
| S&P | 8.0% / 33% | 13.9% / 33% | 0.7% / 33% | 4.77% / 5% | ✓ HALAL |
| FTSE | 30.0% / 33% | 52.2% / 33% | 2.6% / 50% | 4.77% / 5% | ✗ NOT HALAL |
Financial Highlights
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-Equity | 29.5 |
| Current Ratio | 2.3 |
| Total Assets | $4.1B |
Price & Trading
| Last Close | AUD 72.40 |
| 50-Day MA | AUD 83.83 |
| 200-Day MA | AUD 133.07 |
| Avg Volume | 896K |
| Beta | 0.7 |
|
52-Week Range
AUD 71.45
| |
About Xero (XRO)
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.
Purification Calculator
As a halal stock with 4.77% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Xero (XRO) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Xero 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 Xero's debt ratio?
Xero'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 30.0%.
Does Xero require dividend purification?
Yes, Xero has an impermissible income ratio of 4.77%, which means 4.77% 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 Xero's key financial metrics?
Xero has a market capitalization of $12.6B, 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?
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.