AZO

AutoZone Inc.

HALAL — SCREEN DOES NOT PASSstock

Is AZO Halal?

Automotive retail — parts and accessories sales permissible.

What You Should Know

AutoZone sells aftermarket automotive parts and accessories. Core retail business is permissible. Its May 2026 Form 10-Q reports $20,916.463 million of assets, $9,058 million of debt and $13,743.677 million of year-to-date net sales. The debt ratio fails the examined total-assets screens, while the filing does not provide a standalone prohibited-revenue or gross-interest numerator.

⚠️ Concerns

  • Minor interest income from customer credit
  • Debt/assets is 43.31% under the examined asset screen
  • Marketable debt securities and captive-finance activity require methodology-specific review
  • Gross interest income is not separately disclosed in the current quarter

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-05-09; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
43.31%Above limit
Below 33.333% under FTSE Yasaar

9,058 / 20,916.463

Cash + interest-bearing securities / assets
1.89%Within limit
Below 33.333% under FTSE Yasaar

394.639 / 20,916.463

Receivables + cash / assets
4.87%Within limit
Below 50% under FTSE Yasaar

1,018.653 / 20,916.463

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 43.31%, above the examined 33.333% limit; liquidity and receivables-plus-cash pass, but the financial screen fails on debt.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is above the examined MSCI total-assets limit; identifiable liquidity and receivables-plus-cash are below their limits.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is above the examined Malaysia 33% limit; this is not an official SAC classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed and reproducible historical market-cap series is not stored.

Business-activity disclosure

AutoZone sells automotive replacement parts, accessories and services. The core retail activity is generally permissible, but captive-finance and customer-credit activity requires product-level review.

Limitation: The filing does not provide a reproducible prohibited-revenue numerator for customer-credit or finance-related activity, so no unsupported percentage is published.

Purification

The core retail activity is generally permissible, but screened finance-related revenue and gross interest income are not separately disclosed; this is not a complete fixed purification prescription.

Inputs, assumptions and primary sources
  • Amounts are USD millions from AutoZone's fiscal 2026 third-quarter Form 10-Q.
  • Debt is the reported current and non-current long-term debt and finance obligations totaling $9,058 million; operating lease liabilities are excluded.
  • Cash and cash equivalents are $253.729 million. Identifiable available-for-sale debt securities total $140.910 million and are added separately; equity securities are excluded.
  • Accounts receivable, net is $764.924 million.
  • Revenue uses the thirty-six-week year-to-date net sales of $13,743.677 million. The filing does not separately disclose a gross interest-income numerator for the current quarter, so the income input remains unavailable.

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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