GH

What You Should Know

Guardant Health, Inc. is a precision-oncology company whose blood-based (liquid-biopsy) tests help detect and monitor cancer and guide treatment, including its Guardant360 and Shield screening products. Developing and selling diagnostic tests that benefit human health is a permissible activity, so the business-activity screen passes. Like many growth-stage diagnostics companies, Guardant runs an operating loss funded partly by convertible notes while holding a large cash and investments balance, so the screens turn on the balance sheet: confirm the total-debt-to-market-cap ratio against the 33% threshold and the receivables ratio against the board's threshold using the latest filings. Interest income on the sizable cash and marketable-securities balance should be checked against the 5% threshold and the corresponding portion of returns purified. Assuming the ratios hold, GH is generally screened as halal, with routine purification of interest income.