ARW
Arrow Electronics, Inc.
Is ARW Halal?
Electronics and enterprise-technology distribution — generally permissible activity, but current receivables screens fail.
What You Should Know
Arrow Electronics' April 4, 2026 Form 10-Q reports assets of $35,953.970 million, debt of $2,465.766 million, cash of $286.512 million, net receivables of $25,961.193 million and quarterly sales of $9,473.548 million. Debt/assets is 6.86%, liquidity/assets is 0.80%, receivables plus cash/assets is 73.00% and disclosed interest and dividend income is 0.22% of sales. FTSE and MSCI receivables screens fail; no universal prohibited-revenue numerator is disclosed.
⚠️ Concerns
- •Receivables-plus-cash/assets is 73.00%, above examined FTSE and MSCI limits
- •Large working-capital and customer-financing exposure
- •Short-term borrowings, long-term debt and factoring programs
- •Semiconductor, cloud and enterprise customer end uses
- •Disclosed interest and dividend income is 0.22%; no fixed purification percentage asserted
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-04; calculated 2026-07-15.
2,465.766 / 35,953.97
286.512 / 35,953.97
26,247.705 / 35,953.97
21 / 9,473.548
- Financial
- Fails
- Overall
- Fails
Debt/assets is 6.86%, liquidity/assets is 0.80% and receivables-plus-cash/assets is 73.00%, above the examined 50% receivables limit. Disclosed interest and dividend income is 0.22% of sales.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 73.00%, above the examined MSCI total-assets limit; this is not an index-membership claim.
- Financial
- Pass
- Overall
- Incomplete
Known debt, liquidity and disclosed income ratios pass the examined financial limits, but activity remains incomplete; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset-based receivables screens already fail.
Business-activity disclosure
Arrow distributes electronic components, enterprise-computing products and related supply-chain services. The general distribution activity is generally permissible, while customer and end-use revenue is not reduced to a universal prohibited-revenue numerator.
Limitation: The filing does not classify every customer end use or financing-related stream by a universal Sharia category; activity remains qualitative.
Purification
Arrow discloses $21.0 million of interest and dividend income for the quarter, but ZakatInvest does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Arrow's April 4, 2026 Form 10-Q.
- Debt includes $113.371 million of short-term borrowings and $2,352.395 million of long-term debt; operating lease liabilities are excluded.
- Cash and cash equivalents are $286.512 million; no separate debt-security balance is reported in the balance sheet.
- Net accounts receivable is $25,961.193 million and first-quarter sales are $9,473.548 million.
- The filing reports $21.0 million of interest and dividend income for the quarter within interest and other financing expense, net; no fixed purification percentage is prescribed.
- Electronics and enterprise-technology distribution is generally permissible, while customer end uses and receivables financing require qualitative review.
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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