HOG
Harley-Davidson, Inc.
Is HOG Halal?
Motorcycle manufacturer whose permissible core product is offset by Harley-Davidson Financial Services, a substantial captive interest-based lending arm that strains the Sharia screens.
What You Should Know
Harley-Davidson manufactures motorcycles, parts, accessories and apparel, but Harley-Davidson Financial Services (HDFS) provides wholesale and retail interest-based financing. Its March 31, 2026 Form 10-Q reports $7,245.661 million of assets, $2,131.796 million of interest-bearing debt, $1,805.068 million of cash, $67.896 million of available-for-sale debt securities and $2,727.189 million of accounts plus finance receivables against $1,172.531 million of total revenue. Debt/assets is 29.42%, liquidity/assets is 25.16%, receivables-plus-cash/assets is 62.55% and the conservative financial-services revenue proxy is 9.57%; the asset-based screens fail and the captive-finance activity is structurally non-compliant.
⚠️ Concerns
- •HDFS is an integral interest-based lending business; the conservative $112.262 million financial-services revenue proxy is 9.57% of total revenue and exceeds the 5% income benchmark
- •Receivables-plus-cash/assets is 62.55%, above the examined FTSE, MSCI and Malaysia total-assets limits because the HDFS finance-receivable book is included
- •Debt/assets is 29.42%; market-cap screens are not calculated, and HDFS funds lending with conventional interest-bearing debt
- •Structural lending income cannot be reduced to a simple fixed purification percentage; the filing does not isolate every interest and fee component
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
2,131.796 / 7,245.661
1,872.964 / 7,245.661
4,532.257 / 7,245.661
112.262 / 1,172.531
- Financial
- Fails
- Overall
- Fails
Debt/assets is 29.42%, liquidity/assets is 25.16%, receivables-plus-cash/assets is 62.55%, above the 50% limit, and the conservative non-compliant-income proxy is 9.57%, above 5%.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 62.55%, above the examined MSCI total-assets limit; the integral HDFS activity also fails the business screen. This is not an index-membership claim.
- Financial
- Pass
- Overall
- Fails
Debt/assets and liquidity/assets are below the examined Malaysia financial limits, but the captive-finance business fails the activity screen; this is not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A licensed historical market-cap series is not stored.
Business-activity disclosure
Harley-Davidson manufactures motorcycles, parts, accessories and apparel, but Harley-Davidson Financial Services (HDFS) provides wholesale and retail interest-based financing. The captive finance arm is integral to the consolidated business rather than incidental, so a conventional prohibited-revenue screen fails on the disclosed financial-services proxy.
Limitation: The filing reports financial-services revenue but does not isolate every interest, fee, servicing or recovery component; the $112.262 million proxy is deliberately conservative and not a fatwa.
Purification
HDFS financial-services revenue is used as a conservative upper-bound proxy, not a scholar-approved purification numerator; structural lending income cannot be reduced to a simple fixed purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Harley-Davidson's March 31, 2026 Form 10-Q.
- Interest-bearing debt is current debt of $498.246 million, short-term borrowings of $498.685 million and noncurrent debt of $1,134.865 million; operating lease liabilities are excluded.
- Cash and cash equivalents are $1,805.068 million. Available-for-sale debt securities total $67.896 million and are included as interest-bearing securities.
- Accounts receivable of $285.786 million plus net finance receivables held for sale and investment of $2,441.403 million are included as receivables because HDFS lending assets are central to the screen.
- Total first-quarter revenue is $1,172.531 million; financial-services revenue of $112.262 million is used as a conservative upper-bound proxy for non-compliant interest-related revenue and income because the filing does not isolate every interest component.
- Motorcycles, parts, accessories and apparel are generally permissible, but Harley-Davidson Financial Services is an integral interest-based lending business.
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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