AWK
American Water Works Co.
Is AWK Halal?
Water utility — providing clean water is permissible and serves a vital need.
What You Should Know
American Water's March 31, 2026 filing reports debt/assets of 44.31%, liquidity/assets of 0.39%, receivables plus cash/assets of 2.76% and disclosed interest income/revenue of 0.99%. Clean-water and wastewater services remain generally permissible, but the debt screen fails and regulatory/financing structures require review.
⚠️ Concerns
- •Debt screen fails at 44.31% of assets
- •Utility financing and regulatory structure
- •Restricted funds excluded from unrestricted liquidity
- •No quantified prohibited-activity numerator
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
15,626 / 35,264
137 / 35,264
974 / 35,264
12 / 1,207
- Financial
- Fails
- Overall
- Fails
Debt is 44.31% of total assets, above the examined 33.333% limit; liquidity is 0.39%, receivables plus cash are 2.76% and disclosed interest income is 0.99%.
- Financial
- Fails
- Overall
- Fails
Debt is 44.31% 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 44.31% 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
American Water provides regulated drinking-water and wastewater services, which are generally permissible. Its financing, rate-regulated assets and investment balances require quantitative review, and the filing does not provide a reproducible prohibited-activity numerator.
Limitation: The filing does not quantify a scholar-specific prohibited-revenue numerator for ancillary services, financing or investment activity; the screen therefore does not claim a complete business-activity certification.
Purification
Disclosed interest income is 0.99% of quarterly operating revenue, but ZakatInvest does not prescribe a fixed scholar-approved purification percentage and the business-activity numerator remains incomplete.
Inputs, assumptions and primary sources
- Interest-bearing debt combines 12,766 of long-term debt, 1,494 of current long-term debt and 1,366 of short-term debt.
- Cash and cash equivalents are 137. Restricted funds of 19 and no separate unrestricted interest-bearing securities balance are excluded.
- Accounts receivable of 386 is combined with 451 of unbilled revenues as a conservative utility receivables proxy; quarterly operating revenue is 1,207.
- The filing reports 12 of interest income, or 0.99% of quarterly operating revenue. No school-specific prohibited-revenue numerator is disclosed.
- The secured seller promissory note from the prior Homeowner Services Group sale is zero at March 31, 2026 and is not treated as a securities balance.
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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