LH

Laboratory Corporation of America

HALAL — SCREEN DOES NOT PASSstock

Is LH Halal?

Clinical laboratory testing services with permissible business.

What You Should Know

LabCorp provides clinical laboratory testing and drug development services. Its March 31, 2026 Form 10-Q reports $19,087.1 million of assets, $6,400.9 million of interest-bearing debt including finance leases, $981.1 million of cash, $2,288.6 million of receivables and $3,537.6 million of quarterly revenue. Debt/assets is 33.53%, narrowly above the examined FTSE, MSCI and Malaysia asset limits; disclosed investment income is 0.34% of revenue. The core business remains generally permissible, but the current quantitative screen fails.

⚠️ Concerns

  • Debt/assets narrowly exceeds examined limits
  • Clinical and pharmaceutical customer end uses
  • Investment income

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
33.54%Above limit
Below 33.333% under FTSE Yasaar

6,400.9 / 19,087.1

Cash + interest-bearing securities / assets
5.14%Within limit
Below 33.333% under FTSE Yasaar

981.1 / 19,087.1

Receivables + cash / assets
17.13%Within limit
Below 50% under FTSE Yasaar

3,269.7 / 19,087.1

Non-compliant income / revenue
0.34%Within limit
No more than 5% under FTSE Yasaar

12.2 / 3,537.6

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 33.53%, narrowly above the examined FTSE 33.333% limit; liquidity/assets is 5.14%, receivables-plus-cash/assets is 17.13% and investment income is 0.34% of revenue.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 33.53%, above the examined MSCI 33.33% total-assets limit; the other examined ratios are below their limits.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is 33.53%, narrowly above the examined Malaysia 33% limit; this is a calculation against the named ratios, 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 debt screen fails independently.

Business-activity disclosure

Labcorp provides clinical laboratory testing, diagnostics and drug-development services. The core activity is generally permissible.

Limitation: The filing does not allocate every patient, pharmaceutical, reproductive-health or research contract into a scholar-approved prohibited-revenue numerator.

Purification

Labcorp discloses $12.2 million of investment income but does not provide a scholar-approved purification percentage or separate prohibited-activity numerator.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Labcorp's March 31, 2026 Form 10-Q.
  • Interest-bearing debt includes $500.4 million of short-term borrowings/current maturities, $5,833.7 million of long-term debt and $66.8 million of finance-lease liabilities; operating leases are excluded.
  • Cash is $981.1 million and no separately identifiable interest-bearing securities are reported in the selected balance-sheet captions.
  • Accounts receivable are $2,288.6 million net; unbilled services are disclosed separately and are not included in the receivables proxy; first-quarter revenue is $3,537.6 million.
  • Disclosed investment income is $12.2 million and is used as the non-compliant-income proxy.
  • Clinical laboratory testing and drug-development services are treated as generally permissible; patient, pharmaceutical and customer end uses remain qualitative review items.

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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