CRS

Carpenter Technology Corporation

HALAL — METHODS DIFFERstock

Is CRS Halal?

Specialty-alloy manufacturing is generally permissible and known asset-based ratios pass; aerospace/defense end-market treatment remains methodology-dependent.

What You Should Know

Carpenter Technology manufactures specialty alloys and high-performance metals for aerospace, defense, medical, energy and industrial markets. Metals manufacturing is generally permissible, while end-market treatment remains qualitative. Its March 31, 2026 Form 10-Q reports $3,679.1 million of assets, $690.4 million of long-term debt, $294.8 million of cash and $682.0 million of accounts receivable. Debt/assets is 18.76%, liquidity/assets is 8.01% and receivables-plus-cash/assets is 26.55%, below the examined asset-based limits. The filing reports $2.0 million of interest income, or 0.25% of quarterly net sales. The filing does not quantify a universal prohibited-activity numerator for defense or other end uses, so the result is methodology-dependent rather than an official certification.

⚠️ Concerns

  • Capital-intensive producer that carries interest-bearing debt — confirm total debt / market cap against the 33% threshold using the latest filings, the deciding screen
  • A share of revenue serves aerospace/defense customers, which some stricter investors weigh separately at the activity level
  • Confirm the receivables ratio (total receivables / total assets) against the board's threshold (49–70%) using the latest filings
  • Earns incidental interest income on cash — check it against the 5% threshold and purify the corresponding portion of returns
  • A cyclical metals business — re-screen the ratios periodically as the balance sheet changes

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
18.77%Within limit
Below 33.333% under FTSE Yasaar

690.4 / 3,679.1

Cash + interest-bearing securities / assets
8.01%Within limit
Below 33.333% under FTSE Yasaar

294.8 / 3,679.1

Receivables + cash / assets
26.55%Within limit
Below 50% under FTSE Yasaar

976.8 / 3,679.1

Non-compliant income / revenue
0.25%Within limit
No more than 5% under FTSE Yasaar

2 / 811.5

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Incomplete

Debt/assets is 18.76%, liquidity/assets is 8.01%, receivables plus cash/assets is 26.55% and interest income/revenue is 0.25%; known financial ratios pass, but activity classification remains incomplete.

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

Known debt, liquidity and receivables-plus-cash ratios pass the examined total-assets limits; end-market classification remains incomplete.

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

Known financial ratios pass the examined limits; this is not an official SAC classification and end-market treatment remains incomplete.

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

A licensed historical market-cap series is not stored and qualitative end-market treatment remains incomplete.

Business-activity disclosure

Carpenter Technology manufactures specialty alloys and high-performance metals for aerospace, defense, medical, energy and industrial markets. Metals manufacturing is generally permissible, while end-market and defense exposure is not completely separated in the filing.

Limitation: The filing reports end markets but does not quantify a scholar-approved prohibited-activity numerator for defense, government or other customer uses.

Purification

Carpenter discloses $2.0 million of interest income, or 0.25% of quarterly net sales, but no scholar-approved fixed purification percentage is inferred.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Carpenter Technology's March 31, 2026 Form 10-Q.
  • Long-term debt is $690.4 million; operating leases are excluded.
  • Cash and cash equivalents are $294.8 million; no separate interest-bearing securities balance is identified.
  • Accounts receivable, net are $682.0 million and quarterly net sales are $811.5 million.
  • The filing reports $2.0 million of interest income for the quarter.

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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