EMR

Emerson Electric Co.

HALAL — METHODS DIFFERstock

Is EMR Halal?

Industrial automation is generally permissible and the current financial ratios pass, but end-use and software activity remain methodology-dependent.

What You Should Know

Emerson supplies automation, software, process-control, test, measurement and industrial technologies. Its March 31, 2026 filing reports debt/assets of 31.74%, liquidity/assets of 4.26%, receivables plus cash/assets of 11.76% and interest income/revenue of 0.57%. The mechanical ratios pass, while industrial end uses, AspenTech software, acquisitions and government-linked contracts require qualitative review.

⚠️ Concerns

  • Industrial automation and process technology can serve commercial, energy, chemical and government end uses
  • Debt/assets is 31.74% and remains close to the examined 33% limits
  • AspenTech and software activities require data, licensing and contract diligence
  • Acquisitions, divestitures, integration debt, cybersecurity, labor and environmental obligations require review

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
31.74%Within limit
Below 33.333% under FTSE Yasaar

13,359 / 42,088

Cash + interest-bearing securities / assets
4.26%Within limit
Below 33.333% under FTSE Yasaar

1,791 / 42,088

Receivables + cash / assets
11.76%Within limit
Below 50% under FTSE Yasaar

4,949 / 42,088

Non-compliant income / revenue
0.57%Within limit
No more than 5% under FTSE Yasaar

26 / 4,562

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

Debt/assets is 31.74%, liquidity/assets is 4.26%, receivables plus cash/assets is 11.76% and interest income/revenue is 0.57%, below the examined limits; business classification remains incomplete.

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

Debt/assets is 31.74%, liquidity/assets is 4.26% and receivables plus cash/assets is 11.76%, below the examined MSCI total-assets limits; activity classification remains incomplete.

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

The examined ratios pass at debt/assets 31.74%, liquidity/assets 4.26% and receivables plus cash/assets 11.76%; activity classification remains incomplete and this is not an official classification.

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 business classification remains incomplete.

Business-activity disclosure

Emerson supplies automation, software, process-control, test, measurement and industrial technologies. These activities are generally permissible, while software, industrial end uses, acquisitions and government or defense-adjacent applications require continuing qualitative review.

Limitation: The filing does not allocate every software, automation, process, customer end use or government-linked contract into a universal prohibited-activity numerator.

Purification

Emerson discloses net interest income but does not prescribe a scholar-approved purification percentage; readers should follow the methodology and scholar they use.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Emerson's March 31, 2026 Form 10-Q and rounded to the nearest million.
  • Debt includes short-term borrowings/current maturities of long-term debt of $5,804 million and long-term debt of $7,555 million; operating leases are excluded.
  • Cash and equivalents are $1,791 million. No separately reported marketable-securities balance is included; other investments are excluded.
  • Receivables, net are $3,158 million. Second-quarter fiscal 2026 net sales are $4,562 million and interest income netted against interest expense is disclosed as $26 million.
  • Emerson's fiscal year ends September 30; March 31, 2026 is the six-month fiscal-period balance-sheet date and second-quarter income statement period.

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.

🧾
Own EMR? Purify your portfolio.
Per-holding purification amounts, zakat on your shares, and halal alternatives for flagged holdings — a personalized report prepared for you within 48 hours.
Order Your Report — $49 →
Track EMR and 30,000+ stocks' live compliance status with Islamicly — 50% off with code ZAKAT50.Get Islamicly →

Want to screen more assets?

Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.

Go to Halal Checker →