SO

Southern Company

DOUBTFUL — SCREEN DOES NOT PASSstock

Is SO Halal?

Utility — same concerns as Duke Energy.

What You Should Know

Southern provides regulated electric and natural-gas service, generation, transmission and related infrastructure. Its March 31, 2026 filing reports debt/assets of 47.46%, identifiable liquidity/assets of 1.33% and receivables plus cash/assets of 3.09%. Gross interest income and a universal prohibited-revenue numerator are not separately disclosed; nuclear trusts, VIEs and financing structures remain qualitative concerns.

⚠️ Concerns

  • Debt/assets is 47.46% and exceeds the examined FTSE, MSCI and Malaysia limits
  • Nuclear decommissioning trusts include debt and equity investments
  • VIEs, derivatives, regulatory recovery, fuel contracts and financing structures require review
  • Coal, natural-gas, nuclear, environmental and customer-affordability issues remain qualitative

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-14.

USD · millions
Interest-bearing debt / assets
47.46%Above limit
Below 33.333% under FTSE Yasaar

74,522 / 157,031

Cash + interest-bearing securities / assets
1.33%Within limit
Below 33.333% under FTSE Yasaar

2,084 / 157,031

Receivables + cash / assets
3.09%Within limit
Below 50% under FTSE Yasaar

4,854 / 157,031

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

Debt/assets is 47.46%, above the 33.333% limit; liquidity/assets is 1.33% and receivables plus cash/assets is 3.09%.

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

Debt/assets is 47.46%, above the examined 33.33% limit; liquidity and receivables-plus-cash remain below their limits.

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

Debt/assets is 47.46%, above the examined Malaysia SAC limit; identifiable liquidity/assets is below its 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

No licensed historical market-cap series is stored; the asset-based screens fail on debt/assets.

Business-activity disclosure

Southern provides regulated electric and natural-gas service, generation, transmission and related infrastructure. Utility service is generally permissible, while conventional financing, nuclear funds, derivatives, VIEs and fuel contracts require continuing review.

Limitation: The filing does not provide a universal prohibited-revenue numerator or separately disclose gross interest income across regulated, power, gas and investment activities.

Purification

Gross interest income is not separately disclosed and the activity screen is incomplete; no fixed scholar-approved purification percentage is prescribed.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Southern Company's March 31, 2026 Form 10-Q and rounded to the nearest million.
  • Debt includes securities due within one year of $5,701 million, notes payable of $1,673 million and long-term debt of $67,148 million; operating lease obligations are excluded.
  • Cash is $981 million. Interest-bearing securities use $1,103 million of disclosed Treasury, municipal, corporate, mortgage- and asset-backed debt securities; equity investments and cash equivalents are excluded.
  • Receivables combine customer accounts of $2,405 million, unbilled revenues of $740 million, under-recovered fuel-clause revenues of $299 million and other accounts and notes net of the $95 million allowance ($429 million). Quarterly operating revenue is $8,397 million.
  • Gross interest income and a universal prohibited-revenue numerator are not separately disclosed.

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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