ALV

What You Should Know

Autoliv, Inc. is the world's largest supplier of automotive-safety systems, manufacturing airbags, seatbelts, and steering wheels for vehicle manufacturers globally. Producing safety equipment that protects life is a clearly permissible — indeed beneficial — activity with no haram revenue line of its own. The main screening item is the balance sheet: Autoliv carries moderate debt to fund operations and shareholder returns, so its total-debt-to-market-cap ratio should be confirmed against the 33% threshold using the latest filings; it has generally screened within range. Interest income on cash is incidental and should be checked against the 5% threshold and the corresponding portion of returns purified. As a tier-one supplier, Autoliv's results are cyclical with global vehicle production.