TREX
Trex Company, Inc.
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.
382.5 / 1,729.814
4.492 / 1,729.814
331.42 / 1,729.814
0 / 343.403
- 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.
- 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.
- 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.
- 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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