The Short Answer
CDW stock (CDW) is qualitatively halal, but the current quantitative screen fails. The March 31, 2026 filing shows debt/assets of 34.28% and receivables plus cash/assets of 50.57%, above the examined limits.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
5,641 / 16,453.4
578.6 / 16,453.4
8,321.2 / 16,453.4
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.28% and receivables-plus-cash/assets is 50.57%, above the examined FTSE limits; gross interest income is unavailable.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.28% and receivables-plus-cash/assets is 50.57%, above the examined MSCI limits; this is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.28%, above the examined Malaysia limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset-based debt and receivables screens already fail.
Business-activity disclosure
CDW resells and integrates hardware, software, cloud and services for business, government, education and healthcare customers. The general IT-reseller activity is generally permissible, while customer and end-use revenue is not reduced to a universal prohibited-revenue numerator.
Limitation: The filing does not classify every customer project or financing-related stream by a universal Sharia category; activity remains qualitative.
Purification
CDW reports interest expense, net and says it includes interest income, but no standalone gross interest-income numerator is disclosed; ZakatInvest does not prescribe a purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from CDW's March 31, 2026 Form 10-Q.
- Debt includes $1,005.9 million of current maturities and $4,635.1 million of long-term debt; accounts-payable inventory financing is not included in the debt numerator.
- Cash and cash equivalents are $578.6 million; no short-term investment balance is reported at period end.
- Total accounts receivable is $7,742.6 million, including current and unbilled noncurrent receivables; first-quarter net sales are $5,679.8 million.
- Interest expense, net includes interest income, but the filing does not separately disclose a gross interest-income numerator.
- IT resale, integration and services are generally permissible, while customer 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.
Reselling and integrating IT products and services is generally permissible. CDW carries substantial debt and receivables, while its filing reports interest expense net of interest income rather than a standalone gross interest-income numerator. No universal prohibited-revenue numerator is disclosed.
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)
CDW's Business Activity
CDW is a value-added reseller and solutions integrator that helps organizations buy and deploy technology. It serves:
- Business & corporate: Hardware, software, and cloud solutions
- Government & education: Public-sector IT procurement and services
- Healthcare: Integrated IT solutions and services
Reselling and integrating IT products is permissible at the activity level — it is a general-purpose technology-services business.
Concerns to Be Aware Of
1. Leveraged Capital Structure
CDW carries meaningful term debt and senior notes. Verify the debt-to-market-cap ratio carefully against the 33% threshold at the time of investment — this is the primary screening consideration.
2. Receivables
As an IT reseller, CDW carries significant accounts receivable. Verify the receivables-to-assets ratio against the chosen board's threshold.
3. Interest Income
Interest earned on cash balances should be checked against the 5% threshold and the corresponding portion of returns purified.
Filing-Based Ratios (March 31, 2026)
Based on CDW's Form 10-Q:
- Debt / Assets: 34.28%
- Cash + interest-bearing securities / Assets: 3.52%
- Receivables + cash / Assets: 50.57%
- Gross interest income / Revenue: Unavailable in the filing
Methodology Interpretation
FTSE, MSCI and Malaysia financial screens fail on debt and/or receivables. The IT-reseller activity is generally permissible, but prohibited-revenue and gross interest-income inputs remain incomplete. This is not a universal certification.
Bottom Line
CDW (CDW) has a generally permissible IT-reseller business, but the current overall result fails the examined financial screens because debt/assets is 34.28% and receivables plus cash/assets is 50.57%. Investors should apply their chosen methodology and review debt, receivables, inventory financing and customer end uses.
For Muslim investors seeking technology exposure, CDW sits alongside other halal-screened names like Dell (DELL) and HP (HPQ).
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