ALSN
Allison Transmission Holdings, Inc.
Is ALSN Halal?
Commercial-vehicle propulsion is permissible, but current debt/assets is materially above the examined financial limits.
What You Should Know
Allison designs and manufactures automatic transmissions and electrified propulsion systems for commercial vehicles, buses and defense vehicles. Its March 31, 2026 Form 10-Q reports assets of $8,703 million, interest-bearing debt of $4,267 million, cash of $311 million, marketable securities of $27 million and accounts receivable of $892 million. Debt/assets is 49.03%, liquidity/assets is 3.88% and receivables-plus-cash/assets is 13.82%; all three examined asset-based methods fail on debt. The filing reports net interest expense but no reproducible gross non-compliant-income numerator.
⚠️ Concerns
- •Debt/assets is 49.03%, above the examined 33% limits
- •Leveraged-buyout legacy debt and a major acquisition changed the balance sheet
- •Commercial-vehicle and defense end use remains qualitative
- •No reproducible gross non-compliant-income numerator is disclosed
- •Re-screen after debt repayment, acquisition integration or the next filing
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
4,267 / 8,703
338 / 8,703
1,203 / 8,703
- Financial
- Fails
- Overall
- Fails
Debt/assets is 49.03%, above the examined 33.333% limit; liquidity/assets is 3.88% and receivables-plus-cash/assets is 13.82%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 49.03%, above the examined MSCI limit; the asset-based screen fails.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 49.03%, above the examined Malaysia limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical market-cap series is not stored; the debt screen already fails.
Business-activity disclosure
Allison designs and manufactures automatic transmissions and electrified propulsion systems for commercial vehicles, buses and defense vehicles. Vehicle-propulsion manufacturing is generally permissible, while defense end use, customer concentration and acquisition integration require qualitative review.
Limitation: The filing does not allocate revenue by downstream end use or provide a universal prohibited-revenue or non-compliant-income numerator.
Purification
The filing reports net interest expense but no reproducible gross non-compliant-income numerator; no fixed purification percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from Allison Transmission Holdings' March 31, 2026 Form 10-Q.
- Debt combines current portion of long-term debt of $20 million and long-term debt of $4,247 million.
- Cash is $311 million and marketable securities are $27 million; the securities are included in the liquidity proxy.
- Accounts receivable, net are $892 million.
- The filing reports net interest expense but no reproducible gross non-compliant-income numerator.
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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