TREX

Trex Company, Inc.

HALAL — DATA INCOMPLETEstock

Is TREX Halal?

Composite decking and outdoor-living products — generally permissible activity whose known current asset-based ratios pass, with activity classification incomplete.

What You Should Know

Trex's March 31, 2026 Form 10-Q reports assets of $1,729.814 million, revolving-credit borrowings of $382.5 million, cash of $4.492 million, receivables of $326.928 million and quarterly revenue of $343.403 million. Debt/assets is 22.11%, liquidity/assets is 0.26%, receivables plus cash/assets is 19.16% and interest income/expense net is 0.00%; known ratios pass, but no universal prohibited-revenue numerator is disclosed.

⚠️ Concerns

  • Known asset-based ratios pass, but no universal prohibited-revenue numerator is disclosed
  • Revolving-credit borrowings are $382.5 million at March 31, 2026
  • Seasonal receivables and channel inventory swings
  • Residential repair-and-remodel and housing cycles
  • Resin and recycled-material input costs require continuing business review

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
22.11%Within limit
Below 33.333% under FTSE Yasaar

382.5 / 1,729.814

Cash + interest-bearing securities / assets
0.26%Within limit
Below 33.333% under FTSE Yasaar

4.492 / 1,729.814

Receivables + cash / assets
19.16%Within limit
Below 50% under FTSE Yasaar

331.42 / 1,729.814

Non-compliant income / revenue
0.00%Within limit
No more than 5% under FTSE Yasaar

0 / 343.403

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

Debt/assets is 22.11%, liquidity/assets is 0.26%, receivables-plus-cash/assets is 19.16% and interest income/expense net is 0.00%; activity remains qualitative.

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

Debt, liquidity and receivables-plus-cash ratios are below the examined MSCI limits; this is not an index-membership claim and activity remains incomplete.

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

Debt/assets and identifiable liquidity/assets are below the examined Malaysia limits; this is a calculation against SAC ratios, 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; filing-based asset ratios remain documented.

Business-activity disclosure

Trex manufactures wood-alternative composite decking, railing and outdoor-living products using recycled materials. The core building-products activity is generally permissible, but the filing does not provide a universal prohibited-revenue numerator for downstream customers.

Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed; customer end use remains qualitative.

Purification

The filing reports interest income/expense net of $0.000 million; no scholar-approved purification percentage is asserted.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Trex's March 31, 2026 Form 10-Q.
  • The filing reports $382.5 million of borrowings under the revolving credit facility; operating leases are excluded.
  • Cash and cash equivalents are $4.492 million, no separately identified interest-bearing securities balance is added, and accounts receivable, net are $326.928 million.
  • First-quarter revenue is $343.403 million and interest income/expense net is reported as $0.000 million.
  • Composite-decking and outdoor-living manufacturing remains qualitative; no universal prohibited-revenue numerator is 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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