BWA
BorgWarner Inc.
Is BWA Halal?
Automotive components — propulsion and EV systems manufacturing is permissible.
What You Should Know
BorgWarner is a global automotive supplier making powertrain components, electric-vehicle propulsion systems, and thermal-management solutions. Its March 31, 2026 Form 10-Q reports $13,653 million of assets, $3,881 million of interest-bearing debt, $2,110 million of cash, $3,088 million of receivables and $3,533 million of quarterly net sales. Debt/assets is 28.43%, liquidity/assets is 15.45%, receivables-plus-cash/assets is 38.07% and disclosed interest income is 0.40% of revenue. FTSE Yasaar and Malaysia SAC asset-ratio calculations pass, while the examined MSCI total-assets calculation fails on receivables-plus-cash; the result is methodology-dependent rather than a single universal ruling.
⚠️ Concerns
- •Moderate acquisition-related debt
- •MSCI receivables-plus-cash limit is exceeded while other named methods pass
- •Battery and charging-business transitions
- •Minor interest income on cash
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
3,881 / 13,653
2,110 / 13,653
5,198 / 13,653
14 / 3,533
- Financial
- Pass
- Overall
- Pass
Debt/assets is 28.43%, liquidity/assets is 15.45%, receivables-plus-cash/assets is 38.07% and disclosed interest income is 0.40% of revenue; the examined FTSE ratios pass.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 38.07%, above the examined MSCI 33.33% total-assets limit; debt/assets and liquidity/assets remain below their examined limits.
- Financial
- Pass
- Overall
- Pass
Debt/assets and liquidity/assets are below the examined Malaysia limits; this is a calculation against the named ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; the filing-based and methodology-specific results remain documented.
Business-activity disclosure
BorgWarner manufactures automotive propulsion, electric-vehicle, drivetrain and thermal-management components. The core industrial manufacturing activity is generally permissible.
Limitation: The filing does not allocate every customer program or downstream vehicle use into a scholar-approved prohibited-revenue numerator.
Purification
BorgWarner discloses $14 million of interest income but does not provide a scholar-approved purification percentage or separate prohibited-activity numerator.
Inputs, assumptions and primary sources
- Amounts are USD millions from BorgWarner's March 31, 2026 Form 10-Q.
- Interest-bearing debt combines $5 million of short-term debt and $3,876 million of long-term debt; operating leases are excluded.
- Cash is $2,110 million. Equity securities and other long-term receivables are excluded from the interest-bearing-securities proxy because the filing does not characterize them as debt securities.
- Receivables are $3,088 million net; first-quarter net sales are $3,533 million.
- The filing discloses $14 million of interest income, used as the income-screen numerator rather than a purification ruling.
- Automotive components, EV propulsion and thermal-management manufacturing are generally permissible; acquisition, battery, defense-adjacent and end-use questions remain qualitative.
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.
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →