The Short Answer
Celestica stock (CLS) is qualitatively halal, but the current quantitative result fails under the examined MSCI screen. The March 31, 2026 filing shows receivables plus cash at 42.92% of assets; gross interest income is unavailable.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
772.4 / 8,260
378 / 8,260
3,545.4 / 8,260
- Financial
- Incomplete
- Overall
- Incomplete
Debt/assets is 9.35%, liquidity/assets is 4.58% and receivables-plus-cash/assets is 42.92%; known ratios pass the FTSE limits, but gross interest income is unavailable.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 42.92%, above the examined MSCI total-assets limit; this is not an index-membership claim.
- Financial
- Pass
- Overall
- Incomplete
Known debt and liquidity ratios pass the examined Malaysia limits; gross interest income and activity classification remain incomplete.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the MSCI receivables-plus-cash screen fails.
Business-activity disclosure
Celestica provides electronics manufacturing, design and supply-chain services for communications, enterprise, healthtech, aerospace and defense-adjacent customers. The manufacturing 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 program or end use by a universal Sharia category, and gross interest income is not separately disclosed.
Purification
A standalone gross interest-income numerator is not disclosed; ZakatInvest does not prescribe a purification percentage from finance costs.
Inputs, assumptions and primary sources
- Amounts are USD millions from Celestica's March 31, 2026 Form 10-Q.
- Debt includes current and long-term borrowings under the credit facility and finance-lease obligations totaling $772.4 million; operating lease liabilities are excluded.
- Cash and cash equivalents are $378.0 million; no separate interest-bearing securities balance is included.
- Net accounts receivable is $3,167.4 million and first-quarter revenue is $4,047.0 million.
- The filing reports finance costs but does not provide a standalone gross interest-income numerator; income is therefore unavailable for this screen.
- Electronics manufacturing and supply-chain services are generally permissible, but customer, aerospace and defense-adjacent 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.
Providing electronics manufacturing and engineering services is generally permissible. Celestica carries borrowings and finance-lease obligations, but debt/assets is 9.35% and liquidity/assets is 4.58%. The filing reports finance costs but no standalone gross interest-income numerator, and 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)
Celestica's Business Activity
Celestica builds electronic hardware and manages supply chains for technology companies. Its work spans:
- Data-center hardware: Networking and compute for cloud and AI customers
- Industrial & capital equipment: Manufacturing for diverse markets
- Healthcare & aerospace: Specialized manufacturing services
Providing contract electronics manufacturing is permissible at the activity level — it is a general-purpose industrial-technology service.
Concerns to Be Aware Of
1. Term Debt
Celestica carries interest-bearing term debt and a revolving credit facility used for operations and working capital. Verify the debt-to-market-cap ratio against the 33% threshold at the time of investment.
2. Aerospace and Defense Exposure
A portion of revenue comes from aerospace and defense programs. Investors who avoid defense-linked exposure should evaluate this end-market mix, though contract manufacturing is a general-purpose service rather than weapons production.
3. Receivables and Concentration
As a contract manufacturer, Celestica carries substantial receivables and inventory and depends on a concentrated set of large customers. Verify the receivables-to-assets ratio against the chosen board's threshold. Concentration is a business consideration rather than a Sharia screen concern.
Filing-Based Ratios (March 31, 2026)
Based on Celestica's Form 10-Q:
- Debt / Assets: 9.35%
- Cash + interest-bearing securities / Assets: 4.58%
- Receivables + cash / Assets: 42.92%
- Gross interest income / Revenue: Unavailable in the filing
Methodology Interpretation
The MSCI receivables screen fails. FTSE is incomplete because gross interest income is unavailable, while the known Malaysia ratios pass. Aerospace and defense-adjacent customer programs remain a qualitative consideration; this is not a universal certification.
Bottom Line
Celestica (CLS) has a generally permissible core business, but the current overall result fails the examined MSCI receivables screen. Gross interest income is unavailable in the filing, so investors should apply their chosen methodology, review debt and customer end uses, and use their own purification policy.
For Muslim investors seeking electronics-manufacturing exposure, CLS sits alongside other halal-screened names like Fabrinet (FN) and Jabil (JBL).
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