ADP
Automatic Data Processing
Is ADP Halal?
Payroll and HR technology with material interest on client and corporate funds.
What You Should Know
ADP's March 31, 2026 filing shows debt/assets 6.17%, liquidity/assets 5.01%, receivables plus cash/assets 10.54%, and a conservative disclosed interest-income proxy of 7.87% of quarterly revenue. Payroll and HR services are generally permissible, while client-funds investment income, PEO insurance and mixed activities require qualitative review.
⚠️ Concerns
- •Interest-income proxy exceeds the examined 5% FTSE limit
- •Client-funds securities are restricted and excluded from unrestricted liquidity
- •PEO insurance and retirement products require review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
3,978.4 / 64,484.2
3,228.4 / 64,484.2
6,797.6 / 64,484.2
467.7 / 5,939.2
- Financial
- Fails
- Overall
- Fails
Debt is 6.17% of total assets, liquidity is 5.01% and receivables plus cash are 10.54%; the conservative disclosed interest-income proxy is 7.87% of quarterly revenue, above the examined 5% limit.
- Financial
- Pass
- Overall
- Incomplete
Debt, liquidity and receivables-plus-cash are below the examined total-assets thresholds. The business screen remains incomplete because prohibited operating-revenue categories are not disclosed as a reproducible numerator.
- Financial
- Pass
- Overall
- Incomplete
Debt and identifiable liquidity are below the examined 33% total-assets thresholds. This is a calculation against SAC ratios, not an official classification, and business activity remains incomplete.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible 24- or 36-month issuer market-cap history is not stored, so market-cap methods are not estimated from a current spot price.
Business-activity disclosure
Automatic Data Processing provides payroll, human-capital management, payment and PEO services. These operating activities are generally permissible, but its client-funds investment income and PEO/insurance activities require qualitative review.
Limitation: The filing does not provide a reproducible prohibited-revenue numerator for PEO insurance, customer end uses or other scholar-specific activity categories.
Purification
The filing separately reports interest on client funds and corporate funds, but ZakatInvest does not prescribe a fixed scholar-approved purification percentage and the mixed PEO/activity screen remains incomplete.
Inputs, assumptions and primary sources
- Debt combines $3,977.3 million of long-term debt and approximately $1.1 million of current debt at March 31, 2026.
- Cash uses $3,228.4 million of unrestricted cash and cash equivalents. The $37,043.6 million of available-for-sale securities is identified as restricted funds held for clients and is excluded from unrestricted interest-bearing securities.
- Accounts receivable are $3,569.2 million and quarterly revenue is $5,939.2 million.
- The quarter reports $403.9 million of interest on funds held for clients and $63.8 million of interest income on corporate funds; both are included as a conservative upper-bound income proxy, or 7.87% of quarterly revenue.
- Client-funds assets and client-funds obligations are fiduciary balances and should not be read as Automatic Data Processing's unrestricted liquidity.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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