EMR
Emerson Electric Co.
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.
13,359 / 42,088
1,791 / 42,088
4,949 / 42,088
26 / 4,562
- 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.
- 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.
- 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.
- 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.
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