SKY

Skyline Champion Corporation

DOUBTFUL — METHODS DIFFERstock

Is SKY Halal?

Permissible factory-built housing business with a methodology-dependent result because the current MSCI receivables-plus-cash proxy fails narrowly.

What You Should Know

Champion Homes (formerly Skyline Champion) manufactures manufactured and modular homes, park models, accessory dwelling units and modular buildings. Its March 28, 2026 Form 10-K reports assets of $2,131.546 million, interest-bearing debt plus floor-plan payable of $109.089 million, cash of $638.259 million and trade receivables of $88.810 million. Debt/assets is 5.12%, liquidity/assets is 29.94% and receivables-plus-cash/assets is 34.10%; fiscal-year interest income was $23.992 million. FTSE Yasaar and Malaysia asset proxies pass, while the examined MSCI receivables-plus-cash proxy fails at 34.10%, so the stored result is methodology-dependent and activity remains qualitative.

⚠️ Concerns

  • Receivables plus cash/assets is 34.10%, above the examined MSCI 33.33% limit
  • Large cash balance produces disclosed interest income; no universal purification percentage is inferred
  • Floor-plan payable is included in the debt proxy
  • Third-party home financing is indirect exposure but still requires investor judgment
  • Re-screen after the next filing or a material housing-cycle change

Current quantitative Sharia screen

Based on 10-K figures for the period ended 2026-03-28; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
5.12%Within limit
Below 33.333% under FTSE Yasaar

109.089 / 2,131.546

Cash + interest-bearing securities / assets
29.94%Within limit
Below 33.333% under FTSE Yasaar

638.259 / 2,131.546

Receivables + cash / assets
34.11%Within limit
Below 50% under FTSE Yasaar

727.069 / 2,131.546

Non-compliant income / revenue
0.90%Within limit
No more than 5% under FTSE Yasaar

23.992 / 2,663.639

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Incomplete

Debt/assets is 5.12%, liquidity is 29.94% and receivables plus cash is 34.10%, below examined FTSE limits; activity remains incomplete.

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

Receivables plus cash is 34.10%, above the examined MSCI 33.33% total-assets limit; debt and liquidity are below their limits.

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

Debt/assets is 5.12% and liquidity is 29.94%, below the examined 33% limits; activity remains incomplete and this is not an official classification.

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

A licensed historical market-cap series is not stored and activity classification remains incomplete.

Business-activity disclosure

Champion Homes manufactures manufactured and modular homes, park models, accessory dwelling units and modular buildings, with retail and logistics operations. Housing manufacturing is generally permissible, while financing and customer end uses require review.

Limitation: The filing does not provide a reproducible prohibited-revenue numerator for downstream financing, customer end uses or product categories.

Purification

Gross interest income is disclosed at $23.992 million, but no scholar-approved purification percentage is inferred.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Champion Homes' March 28, 2026 Form 10-K.
  • Debt combines $94.649 million floor-plan payable and $14.440 million long-term debt; operating liabilities are excluded.
  • Cash is $638.259 million and no separately identified interest-bearing securities are added.
  • Trade accounts receivable are $88.810 million and fiscal 2026 net sales are $2,663.639 million.
  • Gross interest income is $23.992 million and interest expense is $7.548 million for fiscal 2026.

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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