The Short Answer
Analog Devices stock (ADI) is doubtful on our current filing-based screen. Semiconductor manufacturing is generally permissible, and the known financial ratios pass, but the filing does not fully quantify prohibited activity or a separate interest-income line.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-05-02; calculated 2026-07-15.
8,684.849 / 47,949.095
3,439.308 / 47,949.095
4,488.649 / 47,949.095
- Financial
- Incomplete
- Overall
- Incomplete
Known debt/assets is 18.11%, liquidity/assets is 7.17% and receivables plus cash/assets is 9.36%, below the examined FTSE limits; interest-income disclosure is unavailable.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 18.11%, liquidity/assets is 7.17% and receivables plus cash/assets is 9.36%, below the examined MSCI limits; activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets and liquidity/assets are below 33%; activity remains incomplete and this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; asset-based financial inputs pass but the overall result remains incomplete.
Business-activity disclosure
Analog Devices designs and manufactures analog, mixed-signal and power-management semiconductors. Semiconductor manufacturing is generally permissible, while customer end uses and defense-adjacent applications require separate review.
Limitation: The filing does not provide a reproducible prohibited-revenue numerator for all end uses or a separately stated interest-income line.
Purification
A separate interest-income amount is not available in the extracted filing statement, so no scholar-approved purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions from Analog Devices' May 2, 2026 Form 10-Q.
- Debt includes current debt, commercial paper notes and long-term debt.
- Short-term investments are included as interest-bearing securities; no separate interest-income line was disclosed in the extracted statement.
- Quarterly revenue is $3,623.465 million and no prohibited-activity revenue numerator is 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.
The May 2, 2026 filing reports debt/assets of 18.11%, liquidity/assets of 7.17% and receivables-plus-cash/assets of 9.36%. The result is incomplete rather than a blanket halal certification.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
What Analog Devices Does
Analog Devices, Inc. (headquartered in Wilmington, Massachusetts) is one of the largest analog-chip makers in the world. Its business spans:
- Industrial: Precision measurement, automation, and instrumentation chips — its largest market.
- Automotive: Signal processing, power, and connectivity for vehicles, including EVs.
- Communications: Components for wired and wireless network infrastructure.
- Consumer and healthcare: Sensors and signal-chain parts for devices and medical equipment.
Analog Devices sells physical semiconductor products — a high-value, permissible manufacturing activity.
Current Filing-Based Quantitative Screen
Based on Analog Devices' May 2, 2026 Form 10-Q:
- Debt / Assets: 18.11% — below the examined limits ✅
- Liquidity / Assets: 7.17% — below the examined limits ✅
- Receivables + Cash / Assets: 9.36% — below the examined limits ✅
- Business activity and interest income: Not fully quantified ⚠️
Against its large market capitalization, ADI has generally screened within range. Confirm both the debt and receivables ratios against the latest filings before investing.
Concerns to Be Aware Of
1. Acquisition-Related Debt
Analog Devices took on debt to fund the Maxim Integrated and Linear Technology acquisitions. This is the primary screening item.
Action required: Confirm that total debt / market cap stays under the 33% threshold using the latest filings.
2. Manufacturer Receivables
As a chipmaker selling to distributors and OEMs, Analog Devices carries receivables that are worth checking against the ratio screen.
Action required: Confirm total receivables / total assets against your screening board's threshold (49–70%).
3. Minor Interest Income
The extracted filing does not provide a separately stated interest-income line, so no purification percentage is inferred here.
Methodology Interpretation
The known asset-based financial ratios pass the examined FTSE Yasaar, MSCI and Malaysia proxies, but the overall result is incomplete because activity and interest-income disclosures are limited. No third-party classification is implied.
Bottom Line
Analog Devices (ADI) is doubtful on the current filing-based screen. Its semiconductor business is generally permissible and its known financial ratios pass, but the overall disclosure set is incomplete.
For Muslim investors seeking halal exposure to the analog and industrial-semiconductor space, ADI is a clean, manufacturing-based option.
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