STLD

Steel Dynamics, Inc.

HALAL — METHODS DIFFERstock

Is STLD Halal?

Steel, aluminum, metals recycling and fabrication are generally permissible, and the current asset-based financial ratios pass; business-revenue and interest-only allocation remains incomplete.

What You Should Know

Steel Dynamics' March 31, 2026 Form 10-Q reports $16,720.219 million of total assets, $4,200.793 million of interest-bearing debt, $556.527 million of cash, $2,056.434 million of receivables and $4,369.195 million of quarterly net sales. Those inputs produce debt/assets of 25.12%, liquidity of 3.33% and receivables plus cash/assets of 15.63%, so the examined asset-based financial screens pass. The filing reports $8.5 million of net other income but combines interest income with equity-method and other non-operating activity, so no interest-only percentage or fixed purification rate is asserted. Steel, aluminum, metals recycling and fabrication are generally permissible industrial activities, but the public filing does not allocate a universal prohibited-revenue numerator. This is a current ZakatInvest calculation, not an index-membership claim.

⚠️ Concerns

  • Debt/assets of 25.12% are below the examined 33% asset-based limits, but cyclical steel and scrap prices can change the ratio
  • The filing combines interest income with equity-method and other non-operating income in net other income; no fixed purification percentage is asserted
  • Commodity, electricity, natural-gas and scrap hedging instruments require scholar-specific treatment
  • The aluminum flat-rolled mill is ramping and has required substantial capital deployment, creating execution, impairment and financing risks
  • Customer end use, downstream projects, environmental impacts and imported-material exposure remain qualitative diligence topics
  • Market-cap denominator methods are not calculated without a licensed historical market-cap series

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
25.12%Within limit
Below 33.333% under FTSE Yasaar

4,200.793 / 16,720.219

Cash + interest-bearing securities / assets
3.33%Within limit
Below 33.333% under FTSE Yasaar

556.527 / 16,720.219

Receivables + cash / assets
15.63%Within limit
Below 50% under FTSE Yasaar

2,612.961 / 16,720.219

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

Debt is 25.12%, liquidity is 3.33% and receivables plus cash are 15.63%, below the examined known financial limits. The filing does not provide a reproducible interest-only numerator for the income test or a universal prohibited-revenue numerator.

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

Debt, liquidity and receivables-plus-cash pass the examined total-assets limits, but the filing does not disclose a universal prohibited-revenue or interest-only numerator. This is a calculation against the named method, not an index-membership claim.

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

Debt is 25.12% and identifiable cash is 3.33% of total assets; the core industrial activity is generally permissible, but screened business revenue is not separately allocated. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
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

Steel Dynamics manufactures steel and aluminum products, processes ferrous and nonferrous scrap, and fabricates steel joists and deck products. These industrial manufacturing, recycling and construction-material activities are generally permissible at the activity level.

Limitation: The filing reports product and segment sales but does not allocate a universal prohibited-revenue numerator by customer, end use, contract or derivative activity, so no unsupported haram-revenue percentage is estimated.

Purification

The filing combines interest income with equity-method and other non-operating income, so no scholar-approved fixed purification rate is calculated from the $8.5 million net other-income line.

Inputs, assumptions and primary sources
  • Assets use Steel Dynamics' consolidated total assets of $16,720.219 million at March 31, 2026.
  • Interest-bearing debt uses current maturities of $22.124 million plus long-term debt of $4,178.669 million. Other liabilities, redeemable noncontrolling interests and derivative exposures are not silently added as conventional debt.
  • Cash uses $556.527 million of cash and equivalents. The filing defines cash equivalents as highly liquid investments with maturities of three months or less; no separately identifiable interest-bearing securities balance is entered to avoid double counting.
  • Accounts receivable uses $2,050.980 million of net trade receivables plus $5.454 million of related-party receivables, consistent with the filing's approximately $2,056.4 million total.
  • Quarterly revenue uses $4,369.195 million of consolidated net sales for the three months ended March 31, 2026.
  • Other income is reported net at $8.5 million and includes interest income, equity-method investment income and other non-operating activity; the filing does not provide a reproducible interest-only numerator, so non-compliant income is unavailable rather than estimated.

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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