EL

Estée Lauder Companies

DOUBTFUL — SCREEN DOES NOT PASSstock

Is EL Halal?

Beauty — debt screen fails and ingredients remain scholar-dependent.

What You Should Know

Estée Lauder's March 31, 2026 filing reports debt/assets of 37.18%, liquidity/assets of 15.90%, receivables plus cash/assets of 24.78% and disclosed interest income of 0.40% of quarterly revenue. Cosmetics, skincare and fragrance ingredients, alcohol, animal derivatives and conventional financing require review.

⚠️ Concerns

  • Debt screen fails at 37.18% of assets
  • Cosmetic ingredients and alcohol are scholar-dependent
  • Disclosed interest income is not a complete purification prescription

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
37.18%Above limit
Below 33.333% under FTSE Yasaar

7,312 / 19,664

Cash + interest-bearing securities / assets
15.90%Within limit
Below 33.333% under FTSE Yasaar

3,126 / 19,664

Receivables + cash / assets
24.78%Within limit
Below 50% under FTSE Yasaar

4,872 / 19,664

Non-compliant income / revenue
0.40%Within limit
No more than 5% under FTSE Yasaar

15 / 3,712

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt is 37.18% of assets, above the examined limit; liquidity is 15.90%, receivables plus cash are 24.78% and disclosed interest income is 0.40%.

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

Debt/assets is 37.18%, above the examined MSCI total-assets 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 37.18%, above the examined Malaysia financial limit; this is not an official classification.

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

A licensed historical market-cap series is not stored; the debt failure is independent of that denominator.

Business-activity disclosure

Estée Lauder makes cosmetics, skincare, fragrance and hair-care products. Beauty products are scholar-dependent because of ingredients, alcohol, animal derivatives, marketing and product use; conventional financing also requires review.

Limitation: The filing does not quantify a scholar-specific prohibited-revenue numerator; the disclosed income figure is a screen input, not a complete purification prescription.

Purification

Estée Lauder discloses $15 million of net interest and investment income but does not prescribe a scholar-approved purification percentage; the debt failure is independent of any purification estimate.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Estée Lauder's March 31, 2026 Form 10-Q.
  • Debt includes $502 million current debt and $6,810 million long-term debt; operating leases are excluded.
  • Cash and equivalents are $3,126 million; money-market funds are treated as included in cash equivalents and are not double-counted.
  • Accounts receivable are $1,746 million and quarterly revenue is $3,712 million; disclosed interest and investment income, net, is $15 million.
  • The filing does not allocate cosmetics, fragrance or skincare revenue into a universal prohibited-activity 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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