CMC
Commercial Metals Company
Is CMC Halal?
Steel production and recycling are permissible, but current debt/assets is above the examined financial limits.
What You Should Know
Commercial Metals manufactures, recycles and fabricates steel and metal products, including rebar and merchant steel used in construction. Its May 31, 2026 Form 10-Q reports assets of $9,796.355 million, interest-bearing debt of $3,400.485 million, cash of $559.759 million and accounts receivable of $1,391.195 million. Debt/assets is 34.71%, liquidity/assets is 5.71% and receivables-plus-cash/assets is 19.92%; all three examined asset-based methods fail on debt. The filing reports interest expense but no reproducible gross non-compliant-income numerator.
⚠️ Concerns
- •Debt/assets is 34.71%, above the examined 33% limits
- •Mill expansion, acquisition and litigation obligations affect leverage
- •Steel prices and construction demand are cyclical
- •No reproducible gross non-compliant-income numerator is disclosed
- •Re-screen after the next filing or a material debt change
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-05-31; calculated 2026-07-15.
3,400.485 / 9,796.355
559.759 / 9,796.355
1,950.954 / 9,796.355
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.71%, above the examined 33.333% limit; liquidity/assets is 5.71% and receivables-plus-cash/assets is 19.92%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.71%, above the examined MSCI limit; the asset-based screen fails.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.71%, above the examined Malaysia limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical market-cap series is not stored; the debt screen already fails.
Business-activity disclosure
Commercial Metals manufactures, recycles and fabricates steel and metal products, including rebar and merchant steel used in construction. Steel production and recycling are generally permissible, while end use, litigation and acquisition exposure require qualitative review.
Limitation: The filing does not allocate revenue by downstream end use or provide a universal prohibited-revenue or non-compliant-income numerator.
Purification
The filing reports interest expense but no reproducible gross non-compliant-income numerator; no fixed purification percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from Commercial Metals Company's May 31, 2026 Form 10-Q.
- Debt combines current maturities of long-term debt of $88.792 million and long-term debt of $3,311.693 million.
- Cash and cash equivalents are $559.759 million; restricted cash is excluded from the interest-bearing securities proxy.
- Accounts receivable, net are $1,391.195 million.
- The filing reports interest expense but no reproducible gross non-compliant-income numerator.
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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