AEP
American Electric Power
Is AEP Halal?
Electric utility — permissible service but high debt structure.
What You Should Know
AEP's March 31, 2026 filing reports debt/assets of 43.40%, liquidity/assets of 0.40% and receivables plus cash/assets of 2.78%. Gross interest income and a school-specific prohibited-revenue numerator are not separately disclosed. Electric utility service remains generally permissible, but the debt screen and generation/marketing mix require review.
⚠️ Concerns
- •Debt screen fails at 43.40% of assets
- •Generation and marketing activities
- •High utility debt and interest expense
- •Gross interest income is not separately disclosed
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
51,109 / 117,776
471 / 117,776
3,276 / 117,776
- Financial
- Fails
- Overall
- Fails
Debt is 43.40% of total assets, above the examined 33.333% limit; liquidity is 0.40% and receivables plus cash are 2.78%, while gross interest income is unavailable.
- Financial
- Fails
- Overall
- Fails
Debt is 43.40% of total assets, above the examined 33.33% limit; liquidity and receivables-plus-cash are below their examined limits. This is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt is 43.40% of total assets, above the examined 33% limit; identifiable liquidity is below 33%. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.
- 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
AEP provides electric generation, transmission and distribution, generally permissible utility services. Generation and marketing, fuel procurement, financing, risk-management and regulated-asset structures require qualitative review, and no reproducible prohibited-activity numerator is disclosed.
Limitation: The filing does not quantify a scholar-specific prohibited-revenue numerator or gross interest income; this record is not an official Sharia classification.
Purification
Gross interest income is not separately disclosed for the consolidated issuer and the business-activity numerator remains incomplete; no fixed purification amount is prescribed.
Inputs, assumptions and primary sources
- Interest-bearing debt combines 1,555 of short-term debt, 2,704 of long-term debt due within one year and 46,850 of noncurrent long-term debt.
- Cash and cash equivalents are 306. Other temporary investments include 165 of fixed-income mutual funds; restricted cash, equity funds and spent nuclear-fuel/decommissioning trusts are excluded from unrestricted securities.
- The reported total accounts receivable balance is 2,970 and includes customer receivables, accrued unbilled revenues, pledged receivables and miscellaneous receivables net of allowance; quarterly total revenue is 6,020.
- Gross interest income is not separately disclosed in the consolidated statement; a small affiliated interest-income line at a subsidiary is not treated as a consolidated gross-income numerator.
- No school-specific prohibited-revenue numerator is disclosed; generation, marketing, transmission and regulated utility activity remain qualitative questions.
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.
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →