PII

Polaris Inc.

HALAL — SCREEN DOES NOT PASSstock

Is PII Halal?

Powersports vehicle maker — a permissible manufacturing business, with debt and a finance JV to screen.

What You Should Know

Polaris Inc. designs and manufactures powersports vehicles, snowmobiles, motorcycles and marine products. Its March 31, 2026 Form 10-Q reports assets of $5,241.5 million, interest-bearing debt of $2,091.0 million, cash of $282.0 million and trade receivables of $249.0 million. Debt/assets is 39.89%, liquidity/assets is 5.38% and receivables-plus-cash/assets is 10.13%; the debt screen fails. The filing reports interest expense but no reproducible non-compliant-income numerator, while finance services and dealer arrangements remain qualitative.

⚠️ Concerns

  • Debt/assets is 39.89%, above examined 33% limits
  • Retail-finance and dealer-floorplan arrangements require qualitative review
  • No reproducible gross non-compliant-income numerator is disclosed
  • Highly cyclical with consumer-discretionary demand
  • Re-screen before each purchase given leverage

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
39.89%Above limit
Below 33.333% under FTSE Yasaar

2,091 / 5,241.5

Cash + interest-bearing securities / assets
5.38%Within limit
Below 33.333% under FTSE Yasaar

282 / 5,241.5

Receivables + cash / assets
10.13%Within limit
Below 50% under FTSE Yasaar

531 / 5,241.5

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

Debt/assets is 39.89%, above the examined 33.333% limit; business disclosure remains qualitative.

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

Debt/assets is 39.89%, above the examined MSCI limit; the asset-based screen fails.

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

Debt/assets is 39.89%, above the examined Malaysia limit; this is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A properly licensed and reproducible historical market-cap series is not stored; the debt screen already fails.

Business-activity disclosure

Polaris manufactures powersports vehicles and equipment, with an affiliated financial-services component. Manufacturing is generally permissible, while finance income, dealer arrangements and government/defense products require qualitative review.

Limitation: The filing does not provide a universal prohibited-revenue or non-compliant-income numerator for financing, customer use or product end markets.

Purification

The filing reports interest expense but no reproducible gross non-compliant-income numerator; no fixed purification percentage is asserted.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Polaris's March 31, 2026 Form 10-Q.
  • Debt combines current financing obligations of $34.8 million and long-term financing obligations of $2,056.2 million.
  • Cash is $282.0 million; the filing does not identify a separate interest-bearing securities balance.
  • Trade receivables, net are $249.0 million; income-tax receivables are excluded from the operating receivable proxy.
  • The filing reports interest expense but does not provide a reproducible non-compliant-income numerator; powersports manufacturing and finance services require qualitative review.

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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