The Short Answer
Five Below stock (FIVE) is generally halal on the current record. Discount retail is generally permissible and the latest filing shows no interest-bearing debt with asset-based ratios below the examined limits. Product mix and interest-income classification remain incomplete.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-05-02; calculated 2026-07-14.
0 / 5,055.003
1,113.262 / 5,055.003
638.892 / 5,055.003
8.3 / 1,285.6
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 0.00%, liquidity/assets is 22.02%, receivables plus cash/assets is 12.64% and the conservative other-income upper bound is 0.65%; the examined financial ratios pass while product classification remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets, liquidity/assets and receivables plus cash/assets are below the examined MSCI total-assets limits; this is a calculation against the named method, not an index-membership claim.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets and identifiable liquidity/assets are below the examined Malaysia SAC limits; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed reproducible 24- or 36-month market-cap history is not stored; a spot estimate is not substituted.
Business-activity disclosure
Five Below is a discount retailer of toys, accessories, room décor, beauty, tech and other consumer goods. Ordinary retail is generally permissible, while product mix and entertainment-related items require qualitative review.
Limitation: The filing does not quantify product-level revenue under a universal prohibited-activity taxonomy and combines interest income with other income.
Purification
Interest income is included only in a conservative 8.3 million other-income upper bound. ZakatInvest does not prescribe a fixed scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Five Below's May 2, 2026 Form 10-Q.
- No drawn line of credit or other conventional borrowings are reported; operating lease liabilities are not treated as interest-bearing debt in this screen.
- Cash is 638.892 and short-term corporate-bond investments are 474.370.
- No trade-receivable line is reported on the balance sheet, so accounts receivable is recorded as zero rather than inferred.
- Quarterly net sales are 1,285.6; interest income and other income, net of 8.3 is used as a conservative upper bound because interest income is not separated.
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.
Five Below's May 2, 2026 filing supplies the current ratios above. Market-cap methods are not calculated, and no product-level prohibited-revenue percentage is invented.
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)
Five Below's Business Activity
Five Below operates over 1,600 discount retail stores across the United States, selling a wide variety of merchandise primarily at price points up to $5 (with some items up to $25 in the "Five Beyond" sections). Key product categories include:
- Beauty and personal care products
- Tech accessories (phone cases, cables, headphones)
- Home goods and seasonal décor
- Toys and games
- Candy, snacks, and beverages
- School and art supplies
Retail trade in permissible goods is entirely halal in Islam. Five Below does not sell alcohol, tobacco, adult content, or other haram items. The company's focus on serving families and teens with affordable goods is a socially beneficial business.
Financial Ratios (May 2, 2026)
Using the latest Form 10-Q and the total-assets inputs shown above:
- Interest-bearing debt / total assets: 0.00% ✅
- Identifiable liquidity / assets: 22.02% ✅
- Receivables + cash / assets: 12.64% ✅
- Interest/other income upper bound / revenue: 0.65% ✅
The disclosed asset-based ratios pass. Product classification and the exact interest-income component remain incomplete, and market-cap denominator methods are not calculated.
Concerns to Be Aware Of
1. Entertainment Products
Five Below sells video games, music accessories, and pop culture merchandise. The permissibility of video games and music is debated among scholars, but Five Below's sale of these items is indirect — the company is a retailer, not a content creator. Most scholars view this as an indirect concern that does not disqualify the investment.
2. Candy and Snack Products
Five Below sells candy and snack products. While the items themselves may not always be halal-certified, the company is simply a retailer of consumer goods — it is not responsible for the halal certification of each product it sells, similar to any general retailer.
3. Interest Income (Minor)
Five Below earns a small amount of interest on cash holdings. This represents well under 1% of revenue. Scholars require purification of this portion.
Investors should seek qualified guidance on purification; ZakatInvest does not prescribe a fixed donation percentage.
How to Read the Quantitative Result
The record documents the examined FTSE, MSCI and Malaysia asset-based ratios. FIVE passes those disclosed financial ratios, but product-level classification, interest-income separation and market-cap methods remain incomplete.
Bottom Line
Five Below (FIVE) is generally halal on the current record for Muslim investors. The discount-retail business is generally permissible and the examined asset-based financial ratios pass, while product mix and interest-income details remain incomplete. Re-screen after a successor filing.
Five Below is a straightforward permissible investment — a clean retailer serving families and teens with affordable everyday goods.
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