ETN
Eaton Corporation PLC
Is ETN Halal?
Generally permissible infrastructure and industrial products, but the current asset-based financial screen fails on elevated debt and defense end-use remains qualitative.
What You Should Know
Eaton's March 31, 2026 filing reports debt/assets of 38.36%, cash plus short-term investments/assets of 1.36%, receivables plus cash/assets of 12.58% and no separately disclosed gross interest-income numerator. Electrical, aerospace and mobility products are generally neutral industrial activity, while military end-use, acquisitions, export controls and supply-chain exposure require qualitative review.
⚠️ Concerns
- •Debt/assets is 38.36% and exceeds the examined FTSE, MSCI and Malaysia total-assets limits
- •Aerospace products serve both commercial and military customers
- •Gross interest income is unavailable because the filing reports interest expense, net
- •Boyd Thermal and Ultra PCS acquisitions materially changed leverage and goodwill
- •Government contracting, export controls, safety and environmental obligations require continuing review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
21,129 / 55,085
751 / 55,085
6,931 / 55,085
- Financial
- Fails
- Overall
- Fails
Debt is 38.36% and exceeds the examined FTSE limit; cash plus short-term investments are 1.36% and receivables plus cash are 12.58%. Gross interest income is unavailable, but the debt failure is determinative.
- Financial
- Fails
- Overall
- Fails
Debt is 38.36% and exceeds the examined MSCI total-assets limit, while liquidity and receivables plus cash are below their limits. This is a calculation against the named method, not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt is 38.36% and exceeds the examined Malaysia SAC financial limit; liquidity is 1.36%. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Eaton designs power-management, electrical, aerospace, vehicle and mobility systems. Electrical infrastructure and neutral industrial components are generally permissible, while defense end-use, aerospace customers and product-specific applications require continuing review.
Limitation: The filing does not allocate revenue by military end-use, weapons platform, customer contract or other universally prohibited category into a reproducible prohibited-revenue numerator; no blanket zero-concern claim is made.
Purification
Eaton reports interest expense, net but does not separately disclose gross interest income or prescribe a scholar-approved purification percentage. Readers should follow the qualified scholar or methodology they use rather than applying an invented fixed rate.
Inputs, assumptions and primary sources
- Inputs use Eaton's March 31, 2026 Form 10-Q; amounts are USD millions as presented in the filing.
- Debt uses $2,510 million of short-term debt, $84 million of current long-term debt and $18,535 million of long-term debt. Operating lease liabilities are not entered as conventional debt.
- Cash uses $565 million of cash and $186 million of short-term investments reported on the balance sheet.
- Receivables use $6,366 million of accounts receivable, net. The filing separately identifies $933 million of unbilled receivables within prepaid expenses and other current assets; it is not added to avoid mixing a contract-asset line with trade receivables.
- Quarterly net sales are $7,451 million. The filing reports interest expense, net of $106 million rather than a separately isolated gross interest-income numerator, so no income percentage is estimated.
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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