ETSY

Etsy Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is ETSY Halal?

Marketplace trade is generally permissible, but the latest debt and liquidity ratios materially fail.

What You Should Know

Etsy's March 31, 2026 filing reports 114.72% interest-bearing debt/assets, 53.18% identifiable liquidity/assets and 45.62% receivables-plus-cash/assets. The filing does not separately disclose interest income. Seller listings and product categories require qualitative review, so the platform is not treated as a universal halal product screen.

⚠️ Concerns

  • Debt/assets is 114.72%, above the examined limits
  • Liquidity/assets is 53.18%
  • Seller listings are not quantified under a universal prohibited-product taxonomy
  • Interest income is not separately disclosed

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
114.72%Above limit
Below 33.333% under FTSE Yasaar

3,075.773 / 2,681.053

Cash + interest-bearing securities / assets
53.18%Above limit
Below 33.333% under FTSE Yasaar

1,425.765 / 2,681.053

Receivables + cash / assets
45.62%Within limit
Below 50% under FTSE Yasaar

1,223.085 / 2,681.053

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

Debt/assets is 114.72%, liquidity/assets is 53.18% and receivables plus cash/assets is 45.62%; debt and liquidity exceed the examined FTSE limits, while interest income remains unavailable.

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

Debt/assets is 114.72% and liquidity/assets is 53.18%, above the examined MSCI total-assets limits; receivables plus cash/assets is 45.62%. 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 114.72% and identifiable liquidity/assets is 53.18%, above the examined Malaysia SAC 33% limits. This is a calculation against SAC ratios, not an official classification.

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

A properly licensed reproducible 24- or 36-month market-cap history is not stored; a spot estimate is not substituted.

Business-activity disclosure

Etsy operates a marketplace for handmade, vintage and craft goods. Facilitating ordinary trade is generally permissible, but seller-category, product-listing and payments exposure require qualitative review.

Limitation: The filing does not quantify potentially prohibited listings or gross interest income under a universal Sharia taxonomy.

Purification

Interest income is not separately disclosed in the current filing. ZakatInvest does not prescribe a fixed scholar-approved purification percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Etsy's March 31, 2026 Form 10-Q.
  • Interest-bearing debt includes short-term debt, long-term debt and finance lease obligations (3,075.773); operating seller and funds-payable balances are excluded.
  • Cash is 1,214.374 and short-term investments are 211.391; long-term investments are not classified as interest-bearing securities without instrument detail.
  • Accounts receivable is 8.711 and quarterly revenue is 631.277.
  • Interest income is not separately disclosed; seller categories and product listings are not allocated to a universal prohibited-revenue 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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