The Short Answer
Autoliv stock (ALV) is considered halal under standard Sharia screening, subject to a debt check. Manufacturing airbags, seatbelts, and steering wheels — safety equipment that protects life — is a clearly permissible, indeed beneficial, activity with no haram revenue line of its own. The main item to confirm is the balance sheet.
Because Autoliv carries moderate debt to fund operations and shareholder returns, its total-debt-to-market-cap ratio should be confirmed against the 33% threshold using the latest filings, with incidental interest income on cash checked against the 5% threshold and purified.
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)
Autoliv's Business Activity
Autoliv, Inc. is the world's largest supplier of automotive-safety systems. Its activity is:
- Airbags: Frontal, side, and curtain airbag systems
- Seatbelts: Seatbelts and pretensioner systems
- Steering wheels: Steering wheels and related safety components
Producing safety equipment that protects life is a clearly permissible — indeed beneficial — activity with no haram revenue line of its own.
Why ALV Is Halal
1. Permissible Core Business
Supplying automotive-safety systems is a halal manufacturing business that reduces harm and saves lives. There is no gambling, conventional banking, or other prohibited line at the heart of the business.
2. Debt Ratio Is the Main Screen
Autoliv carries moderate debt to fund operations and shareholder returns, so total debt / market cap is the main screen. Confirm it sits under the 33% threshold on the latest filings before investing — it has generally screened within range.
3. Interest on Cash to Purify
Incidental interest income on cash should be confirmed against the 5% threshold and the corresponding small portion of returns purified. As a tier-one supplier, Autoliv's results are cyclical with global vehicle production.
Financial Ratios (2025)
Based on Autoliv's most recent financial statements:
- Total Debt / Market Cap: The main screen — confirm under 33% ⚠️
- Interest Income / Revenue: Verify against the 5% threshold and purify ⚠️
- Haram Revenue: None — automotive-safety systems ✅
- Business Activity: Permissible — safety-equipment manufacturing ✅
Verdict from Major Screening Agencies
Autoliv stock is generally screened as halal, subject to the debt check, by:
- Zoya App — Compliant when the debt ratio passes ⚠️
- Musaffa — Verdict depends on leverage in the latest filings ⚠️
- Most major Sharia advisory boards — Permissible activity, screen the debt ratio ⚠️
Bottom Line
Autoliv (ALV) is halal for Muslim investors when the debt screen passes. The automotive-safety business is permissible and beneficial; confirm total debt / market cap under 33% on the latest filings before each purchase, and purify the minor portion of returns attributable to interest income on cash. Note that ALV is cyclical with global vehicle-production volumes.
For Muslim investors seeking auto-supply exposure, compare ALV with peers like Aptiv (APTV), Lear (LEA), and Genuine Parts (GPC).
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