CRS

What You Should Know

Carpenter Technology Corporation develops, manufactures, and distributes specialty alloys — premium stainless steels, titanium alloys, nickel and cobalt superalloys, and powder metals — used in aerospace and defense, medical devices, energy, and industrial applications. Producing high-performance metals and alloys is a permissible manufacturing activity, so the business-activity screen passes. The verdict depends on the balance sheet: Carpenter is capital-intensive and carries interest-bearing debt, 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. As with other specialty-metals names, a share of revenue serves aerospace/defense, which stricter investors may weigh separately. Interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified. Assuming the ratios hold, CRS is generally screened as halal, with routine purification of minor interest income.