FN
Fabrinet
Is FN Halal?
Precision optical and electro-mechanical manufacturing business — generally permissible activity, but the current MSCI receivables screen fails.
What You Should Know
Fabrinet's March 27, 2026 Form 10-Q reports assets of $3,508.986 million, no interest-bearing debt, cash of $356.562 million, short-term investments of $588.674 million, receivables of $908.544 million and quarterly revenue of $1,214.293 million. Debt/assets is 0.00%, liquidity/assets is 26.94%, receivables plus cash/assets is 36.05% and disclosed interest income is 0.61% of revenue. The MSCI receivables screen fails; no universal prohibited-revenue numerator is disclosed.
⚠️ Concerns
- •Receivables-plus-cash/assets is 36.05%, above the examined MSCI limit
- •Large cash and short-term investment portfolio
- •High receivables and inventory working capital
- •Optical communications, lasers and sensor customer end uses
- •Disclosed interest income is 0.61%; no fixed purification percentage asserted
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-27; calculated 2026-07-15.
0 / 3,508.986
945.236 / 3,508.986
1,265.106 / 3,508.986
7.421 / 1,214.293
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 0.00%, liquidity/assets is 26.94%, receivables-plus-cash/assets is 36.05% and interest income is 0.61%; known financial ratios pass but activity remains incomplete.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 36.05%, above the examined MSCI total-assets limit; this is not an index-membership claim.
- Financial
- Pass
- Overall
- Incomplete
Known debt, liquidity and income ratios pass the examined Malaysia limits; activity remains incomplete and this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the MSCI receivables-plus-cash screen already fails.
Business-activity disclosure
Fabrinet provides precision optical, electro-mechanical and electronic manufacturing services for technology customers. Contract manufacturing is generally permissible, while customer products and end uses are not reduced to a universal prohibited-revenue numerator.
Limitation: The filing does not classify every customer product or end use by a universal Sharia category; activity remains qualitative.
Purification
Fabrinet discloses $7.421 million of interest income, but ZakatInvest does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Fabrinet's March 27, 2026 Form 10-Q.
- No interest-bearing debt is reported; operating lease liabilities are excluded.
- Cash is $356.562 million and short-term investments are $588.674 million.
- Trade accounts receivable, net is $908.544 million and third-quarter revenue is $1,214.293 million.
- The filing discloses $7.421 million of interest income, or 0.61% of quarterly revenue; no fixed purification percentage is prescribed.
- Precision optical, electro-mechanical and electronic manufacturing is generally permissible, but customer end uses remain qualitative.
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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