EMN
Eastman Chemical Company
Is EMN Halal?
Specialty-chemicals manufacturer — a permissible industrial business whose current filing-based debt/assets screen fails.
What You Should Know
Eastman produces specialty plastics, additives, fibers and chemical intermediates for packaging, automotive, construction and consumer markets. Its March 31, 2026 Form 10-Q reports assets of $15,222 million, interest-bearing debt of $5,220 million, cash of $665 million, receivables of $1,217 million and quarterly revenue of $2,177 million. Debt/assets is 34.29%, liquidity/assets is 4.37% and receivables plus cash/assets is 12.36%; the asset-based debt screen fails. The filing reports $52 million of net interest expense, not gross interest income, so no income ratio is inferred.
⚠️ Concerns
- •Known interest-bearing debt/assets is 34.29%, above examined 33.333% limits
- •Packaging, automotive, construction and consumer end uses require qualitative review
- •The $52 million net interest expense is not a gross interest-income numerator; no fixed purification percentage asserted
- •Operating leases are excluded from the interest-bearing debt numerator
- •Chemical input, environmental and cyclical industrial-demand exposure
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
5,220 / 15,222
665 / 15,222
1,882 / 15,222
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.29%, above the examined limit; liquidity/assets is 4.37% and receivables-plus-cash/assets is 12.36%, while gross interest income is unavailable.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.29%, above the examined MSCI total-assets limit; income and product end-use classification remain incomplete.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.29%, above the examined limit; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset-based debt failure remains material.
Business-activity disclosure
Eastman manufactures specialty plastics, additives, fibers and chemical intermediates for packaging, automotive, construction and consumer markets. The industrial materials business is generally permissible in principle, while end-use allocation remains qualitative.
Limitation: The filing does not provide a universal prohibited-activity revenue numerator by product or customer end use.
Purification
The filing's $52 million net interest expense is not a gross interest-income numerator, so no income ratio or fixed purification percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from Eastman's March 31, 2026 Form 10-Q.
- Interest-bearing debt is $770 million short-term borrowings plus $4,450 million long-term debt; operating leases are excluded.
- Cash and cash equivalents are $665 million and accounts receivable plus other receivables are $1,217 million.
- First-quarter revenue is $2,177 million.
- The filing reports $52 million of net interest expense, not gross interest income; it is not used as an income numerator and no purification percentage is inferred.
- Specialty chemicals, plastics and fibers are generally permissible in principle, but product and end-use allocation is not disclosed.
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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