CLH

What You Should Know

Clean Harbors, Inc. is North America's largest provider of hazardous-waste disposal, environmental and industrial cleaning services, and used-oil re-refining (through its Safety-Kleen segment). Collecting, treating, and disposing of hazardous and industrial waste is a clearly permissible activity that benefits public health and the environment, so the business-activity screen passes cleanly. The verdict turns on the balance sheet: Clean Harbors has grown through debt-funded acquisitions and carries interest-bearing term loans and notes, so confirm the total-debt-to-market-cap ratio against the 33% threshold using the latest filings — the deciding screen — and confirm the receivables ratio against the board's threshold. Interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified. Assuming the debt ratio holds against a healthy market cap, CLH is generally screened as halal, with routine purification of minor interest income.