FN

Fabrinet

HALAL — SCREEN DOES NOT PASSstock

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.

USD · millions
Interest-bearing debt / assets
0.00%Within limit
Below 33.333% under FTSE Yasaar

0 / 3,508.986

Cash + interest-bearing securities / assets
26.94%Within limit
Below 33.333% under FTSE Yasaar

945.236 / 3,508.986

Receivables + cash / assets
36.05%Within limit
Below 50% under FTSE Yasaar

1,265.106 / 3,508.986

Non-compliant income / revenue
0.61%Within limit
No more than 5% under FTSE Yasaar

7.421 / 1,214.293

FTSE Yasaar
v4.6, February 2026
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.

MSCI Islamic (total-assets series)
October 2024 methodology
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.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
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.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
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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