WMS
Advanced Drainage Systems, Inc.
Is WMS Halal?
Leading manufacturer of thermoplastic corrugated-pipe and water-management-solutions products — permissible water-management-products manufacturing business with manageable financial-screen profile.
What You Should Know
Advanced Drainage Systems manufactures water-management, corrugated-pipe, stormwater and onsite-septic products. Infrastructure manufacturing is generally permissible; construction, municipal and project end uses remain qualitative. Its March 31, 2026 Form 10-K reports assets of $4,505.623 million, conservative debt/leases of $1,864.521 million, cash of $223.012 million, receivables of $390.536 million and annual revenue of $3,050.376 million. Debt/assets is 41.38%, liquidity/assets is 4.95%, receivables plus cash/assets is 13.62%, and disclosed other interest/revenue is 0.82%; examined FTSE, MSCI and Malaysia asset screens fail on debt.
⚠️ Concerns
- •Current filing-based debt/assets is 41.38%, above the examined 33.33% limit
- •Construction and municipal end uses
- •Disclosed other interest income of $25 million; consult a qualified scholar on purification
- •Resin/raw-material and construction-cycle exposure
- •No universal prohibited-revenue numerator
Current quantitative Sharia screen
Based on 10-K figures for the period ended 2026-03-31; calculated 2026-07-15.
1,864.521 / 4,505.623
223.012 / 4,505.623
613.548 / 4,505.623
25 / 3,050.376
- Financial
- Fails
- Overall
- Fails
Debt/assets is 41.38%, above the examined 33.333% limit; liquidity/assets is 4.95%, receivables-plus-cash/assets is 13.62% and disclosed interest income is 0.82%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 41.38%, above the examined MSCI 33.33% limit; liquidity/assets is 4.95% and receivables-plus-cash/assets is 13.62%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 41.38%, above the examined Malaysia debt limit; infrastructure activity and prohibited-revenue allocation remain qualitative.
- Financial
- Not calculated
- Overall
- Incomplete
A properly licensed and reproducible historical market-cap series is not stored; filing-based asset ratios remain documented.
Business-activity disclosure
Advanced Drainage Systems manufactures and sells water-management and drainage infrastructure products. Infrastructure manufacturing is generally permissible, while construction, municipal and project end uses require qualitative review.
Limitation: The filing does not provide a universal prohibited-revenue numerator across all products and projects.
Purification
Advanced Drainage Systems discloses $25 million of other interest income, but no scholar-approved purification percentage is asserted for the operating business.
Inputs, assumptions and primary sources
- Amounts are USD millions from Advanced Drainage Systems' March 31, 2026 Form 10-K.
- Conservative debt combines $1,630.251 million of debt, $160.071 million of finance-lease liabilities and $74.199 million of operating-lease liabilities.
- Cash is $223.012 million and receivables are $390.536 million.
- Fiscal-year revenue is $3,050.376 million and disclosed other interest income is $25 million, or 0.82% of revenue.
- Water-management and drainage infrastructure products are generally permissible, while construction and government end uses remain qualitative.
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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