LEA
Lear Corporation
Is LEA Halal?
Automotive seating and electronics supplier — a permissible manufacturing business, with debt to screen.
What You Should Know
Lear Corporation is a leading global supplier of automotive seating and electrical-distribution and electronics systems to vehicle manufacturers worldwide. Manufacturing automotive components is a clearly permissible activity with no haram revenue line of its own. The main screening item is the balance sheet: Lear carries moderate debt to fund operations and acquisitions, so its total-debt-to-market-cap ratio should be confirmed against the 33% threshold using the latest filings; it has generally screened within range. Interest income on cash is incidental and should be checked against the 5% threshold and the corresponding portion of returns purified. As a tier-one auto supplier, Lear's results are cyclical with global vehicle production.
⚠️ Concerns
- •Carries moderate operating and acquisition debt — confirm total debt / market cap stays under the 33% threshold against the latest filings
- •Incidental interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified
- •Cyclical with global vehicle-production volumes — re-screen the ratios periodically
- •Re-screen the financial ratios periodically
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