PCAR
PACCAR Inc.
Is PCAR Halal?
Permissible truck and parts manufacturing alongside a material conventional-finance arm; current total-assets screens fail.
What You Should Know
PACCAR's March 2026 filing reports $43.554 billion of assets, $14.946 billion of Financial Services debt, $5.645 billion of cash, $3.214 billion of marketable securities, $21.599 billion of receivables and $6.777 billion of quarterly revenue. Debt/assets are 34.32%, liquidity/assets 20.34% and receivables plus cash/assets 62.55%; the Financial Services interest-and-fees line is $344.9 million, or 5.09% of revenue, before contract-level allocation.
⚠️ Concerns
- •PACCAR Financial Services provides loans, finance leases, dealer wholesale financing and operating leases
- •Debt/assets and receivables plus cash/assets exceed the examined total-assets limits
- •The $344.9 million interest-and-fees line is a conservative upper bound, not a universal prohibited-revenue allocation
- •Interest-rate, foreign-exchange and commodity hedges require methodology-specific review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
14,945.6 / 43,553.5
8,858.3 / 43,553.5
27,243.5 / 43,553.5
344.9 / 6,776.5
- Financial
- Fails
- Overall
- Fails
Debt is 34.32% and receivables plus cash are 62.55%, both above the examined FTSE asset limits; identifiable liquidity is 20.34%. The conservative upper-bound interest-and-fees input is 5.09% of revenue and also exceeds the examined 5% limit.
- Financial
- Fails
- Overall
- Fails
Debt is 34.32% and receivables plus cash are 62.55%, exceeding the examined MSCI total-assets limits; identifiable liquidity is 20.34%. This is a calculation against the named method, not an index-membership claim, and the business allocation remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt is 34.32% and exceeds the examined 33% Malaysia SAC limit; identifiable liquidity is 20.34%. This is a calculation against SAC ratios, not an official SAC classification of a U.S.-listed security; contract-level activity remains unresolved.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
PACCAR manufactures Kenworth, Peterbilt and DAF trucks and distributes aftermarket parts, which are generally permissible industrial and commercial activities. Its Financial Services segment provides customer loans, finance leases, dealer wholesale financing and operating leases, making the qualitative verdict DOUBTFUL for investors who treat conventional lending or interest-based finance as disqualifying.
Limitation: The filing separates Financial Services interest and fees from operating-lease, rental and other revenue, but it does not isolate every contract-level interest, fee, lease, insurance or customer-use component into a universal prohibited-revenue numerator.
Purification
The filing discloses $344.9 million of Financial Services interest and fees, or 5.09% of quarterly revenue, but that line includes fee components and the complete contract-level prohibited-revenue allocation is unavailable. No fixed purification percentage is prescribed; readers should follow the scholar or methodology they use.
Inputs, assumptions and primary sources
- Debt uses PACCAR Financial Services commercial paper and bank loans of $4.7561 billion plus term notes of $10.1895 billion. The filing reports no borrowings under the committed bank facilities; truck-segment operating liabilities are not treated as interest-bearing debt without a disclosed debt caption.
- Cash uses $5.3819 billion in Truck, Parts and Other plus $262.9 million in Financial Services. Marketable securities of $3.2135 billion are separately identified in Truck, Parts and Other and are added as interest-bearing securities.
- Receivables use $2.2569 billion of Truck, Parts and Other trade and other receivables plus $19.3418 billion of Financial Services finance and other receivables. The balance therefore includes the lending arm's financing portfolio rather than hiding it in a narrow trade-receivable figure.
- Revenue uses $6.7765 billion for the three months ended March 31, 2026: $4.5265 billion truck, $1.7101 billion parts, a $2.3 million intersegment elimination and $542.2 million Financial Services revenue.
- The $344.9 million Financial Services interest-and-fees line is used as a conservative upper bound for the income screen. It includes fee components and is not asserted to be pure gross interest income; operating-lease and other Financial Services revenue of $197.3 million is not added to this income input.
- PACCAR reports a $22.3482 billion Financial Services asset base, including loans, finance leases and operating leases. The filing does not provide a universal scholar-approved prohibited-revenue numerator for every lease, fee, insurance or customer contract.
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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