ITW
Illinois Tool Works
Is ITW Halal?
Industrial manufacturing is generally permissible, but current debt/assets fails the financial screens and end-use review remains necessary.
What You Should Know
Illinois Tool Works makes engineered industrial products across automotive OEM, food equipment, test and measurement, welding, polymers, construction and specialty segments. Its March 31, 2026 filing reports debt/assets of 56.25%, receivables plus cash/assets of 25.87% and no separately isolated gross interest-income numerator. The mechanical debt screen fails, while product and customer end uses remain qualitative questions.
⚠️ Concerns
- •Debt/assets is 56.25% and exceeds the examined FTSE, MSCI and Malaysia limits
- •Industrial and automotive components can flow to commercial or defense-adjacent end uses
- •Decentralized divisions make product-level prohibited-activity allocation difficult
- •Labor, safety, environmental, export-control and supply-chain obligations require review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.
9,148 / 16,264
827 / 16,264
4,207 / 16,264
- Financial
- Fails
- Overall
- Fails
Debt/assets is 56.25% and exceeds the examined FTSE limit; receivables plus cash/assets is 25.87% and gross interest income is unavailable.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 56.25%, exceeding the examined MSCI total-assets debt limit; this is a calculation against the named method, not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 56.25%, above the examined Malaysia SAC financial limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the debt screen fails independently.
Business-activity disclosure
Illinois Tool Works makes engineered industrial products across automotive OEM, food equipment, test and measurement, welding, polymers, construction and specialty products. The core manufacturing activity is generally permissible, while end-use, defense-adjacent customers and product applications require continuing review.
Limitation: The filing does not allocate revenue by prohibited end use, defense customer or product category into a reproducible prohibited-revenue numerator, and gross interest income is not separately reported.
Purification
ITW does not separately disclose gross interest income or prescribe a scholar-approved purification percentage; no fixed rate is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions from ITW's March 31, 2026 Form 10-Q.
- Debt is $2,545 million of short-term debt plus $6,603 million of long-term debt; operating leases are excluded.
- Cash and equivalents are $827 million; no separately identified interest-bearing securities balance is added.
- Trade receivables are $3,380 million and first-quarter operating revenue is $4,016 million.
- The filing reports other income but does not separately isolate gross interest income, so no income percentage is estimated.
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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