AAON

What You Should Know

AAON, Inc. engineers and manufactures premium heating, ventilation, and air-conditioning equipment — rooftop units, air-handling units, chillers, coils, and increasingly liquid-cooling and data-center cooling systems — for commercial and industrial buildings. Designing and building HVAC and cooling equipment is a clearly permissible activity, so the business-activity screen passes cleanly. AAON is notable for a conservative balance sheet with little long-term debt, funding growth largely from operating cash flow, so the total-debt-to-market-cap ratio is comfortably within the 33% threshold; still, confirm the debt and receivables ratios against the latest filings. Interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified. On that basis AAON is generally screened as halal, with only routine purification of minor interest income.