AXTA
Axalta Coating Systems Ltd.
Is AXTA Halal?
Industrial and automotive coatings manufacturer — a permissible materials business, with acquisition debt to screen.
What You Should Know
Axalta Coating Systems Ltd. develops and manufactures liquid and powder coatings for the automotive refinish, light- and commercial-vehicle, and industrial markets. Producing coatings is a permissible activity with no haram revenue line. The main screening item is leverage: Axalta was built through a private-equity carve-out and carries a notable debt load, so its total-debt-to-market-cap ratio should be confirmed against the 33% threshold using the latest filings and is the primary item to monitor. Interest income on cash is incidental and should be checked against the 5% threshold and purified.
⚠️ Concerns
- •Carries a notable debt load from its leveraged-buyout history — confirm total debt / market cap against the 33% threshold against the latest filings
- •Incidental interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified
- •Re-screen the financial ratios periodically as the company continues to pay down debt
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →