Is CAT (Caterpillar Inc.) halal?

Q: Is CAT (Caterpillar Inc.) halal?

HALAL: Heavy equipment manufacturing — permissible industrial business. Caterpillar makes construction and mining equipment. Its March 31, 2026 Form 10-Q reports $95,550 million of assets, $43,066 million of interest-bearing debt, $7,621 million of cash plus identified debt securities, $38,721 million of receivables, and $17,415 million of quarterly revenue. Debt/assets is 45.07%, so the current asset-based financial screens fail; the Financial Products segment also reports $942 million of revenue and $104 million of investment and interest income. The industrial core remains generally permissible, but Caterpillar Financial Services requires separate riba analysis.

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CAT

Caterpillar Inc.

HALAL — SCREEN DOES NOT PASSstock

Is CAT Halal?

Heavy equipment manufacturing — permissible industrial business.

What You Should Know

Caterpillar makes construction and mining equipment. Its March 31, 2026 Form 10-Q reports $95,550 million of assets, $43,066 million of interest-bearing debt, $7,621 million of cash plus identified debt securities, $38,721 million of receivables, and $17,415 million of quarterly revenue. Debt/assets is 45.07%, so the current asset-based financial screens fail; the Financial Products segment also reports $942 million of revenue and $104 million of investment and interest income. The industrial core remains generally permissible, but Caterpillar Financial Services requires separate riba analysis.

⚠️ Concerns

•Debt/assets is 45.07% and exceeds the examined asset-based limits
•Caterpillar Financial Services earns interest income and holds material finance receivables
•Equipment, mining, labor, emissions, and end-use impacts require review

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.

USD · millions

Interest-bearing debt / assets

45.07%Above limit

Below 33.333% under FTSE Yasaar

43,066 / 95,550

Cash + interest-bearing securities / assets

7.98%Within limit

Below 33.333% under FTSE Yasaar

7,621 / 95,550

Receivables + cash / assets

44.79%Within limit

Below 50% under FTSE Yasaar

42,793 / 95,550

Non-compliant income / revenue

0.60%Within limit

No more than 5% under FTSE Yasaar

104 / 17,415

Methodology	Financial	Overall	What drives it
FTSE Yasaar v4.6, February 2026	Fails	Fails	Debt/assets is 45.07%, above 33.333%; liquidity/assets is 7.98%, receivables plus cash/assets is 44.78%, and disclosed investment/interest income is 0.60%.
MSCI Islamic (total-assets series) October 2024 methodology	Fails	Fails	Debt/assets is 45.07%, above the examined 33.33% limit; this is not an index-membership claim.
Malaysia SAC financial ratios single 5% activity benchmark adopted November 2025	Fails	Fails	Debt/assets is 45.07%, above the examined 33% limit; this is not an official SAC classification.
Market-cap denominator methods MSCI M-Series, S&P and Dow Jones methods differ	Not calculated	Fails	Market-cap methods are not calculated; the debt failure independently prevents a pass.

FTSE Yasaar

v4.6, February 2026

Financial: Fails
Overall: Fails

Debt/assets is 45.07%, above 33.333%; liquidity/assets is 7.98%, receivables plus cash/assets is 44.78%, and disclosed investment/interest income is 0.60%.

MSCI Islamic (total-assets series)

October 2024 methodology

Financial: Fails
Overall: Fails

Debt/assets is 45.07%, above the examined 33.33% limit; this is not an index-membership claim.

Malaysia SAC financial ratios

single 5% activity benchmark adopted November 2025

Financial: Fails
Overall: Fails

Debt/assets is 45.07%, above the examined 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: Fails

Market-cap methods are not calculated; the debt failure independently prevents a pass.

Business-activity disclosure

Caterpillar primarily manufactures heavy equipment, while its consolidated Financial Products segment provides customer and dealer financing and insurance. The industrial core is generally permissible, but the financing subsidiary requires continuing riba analysis.

Limitation: The filing identifies Financial Products revenue but does not classify every financing, lease, insurance, and fee stream under a single Sharia revenue taxonomy.

Purification

Investment and interest income of 104 is disclosed; purification does not cure the failed leverage screen or resolve the financing subsidiary's business classification.

Inputs, assumptions and primary sources

Amounts are USD millions from Caterpillar's March 31, 2026 Form 10-Q.
Debt includes short-term borrowings of 4,729, current long-term debt of 7,695, and long-term debt of 30,642.
Interest-bearing securities are identified debt securities of 3,549; equity securities are excluded.
Receivables include current and long-term trade/other and finance receivables totaling 38,721.
Financial Products revenue is 942 of total sales and revenues of 17,415; investment and interest income is 104.

U.S. Securities and Exchange Commission: Caterpillar Inc. Q1 2026 Form 10-Q FTSE Russell: FTSE Yasaar Global Equity Shariah Index Series Ground Rules MSCI: MSCI Islamic Index Series Methodology Securities Commission Malaysia: Shariah-Compliant Securities Screening Methodology

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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