ATI

What You Should Know

ATI Inc. (formerly Allegheny Technologies) is a specialty-materials producer that makes titanium and titanium alloys, nickel-based alloys and superalloys, and other high-performance metals used in jet engines, airframes, medical, energy, and industrial applications. Producing advanced metals and alloys is a permissible manufacturing activity, so the business-activity screen passes. Two things shape the verdict. First, the balance sheet: ATI is capital-intensive and carries interest-bearing debt, so confirm the total-debt-to-market-cap ratio against the 33% threshold using the latest filings — the deciding screen — and confirm the receivables ratio against the board's threshold. Second, a large share of revenue serves the aerospace and defense markets, which stricter investors weigh separately at the activity level. Interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified. Assuming the ratios hold, ATI is generally screened as halal, with routine purification of minor interest income.