The Short Answer
Gildan stock (GIL) is doubtful on the current quantitative screen. Gildan Activewear is a vertically integrated manufacturer of everyday basic apparel — activewear, t-shirts, fleece, socks, underwear, and hosiery — sold under brands including Gildan, American Apparel and Hanes. Manufacturing and selling basic clothing is generally permissible, but the latest filing shows debt/assets above the displayed asset-based limit.
Current quantitative Sharia screen
Based on 6-K figures for the period ended 2026-03-29; calculated 2026-07-15.
4,715.1 / 10,473.214
237.055 / 10,473.214
1,246.733 / 10,473.214
- Financial
- Fails
- Overall
- Fails
Debt/assets is 45.02%, above the examined 33.333% limit; liquidity/assets is 2.26% and receivables plus cash/assets is 11.90%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 45.02%, above the examined MSCI 33.33% limit; liquidity/assets and receivables plus cash/assets are below their displayed limits.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 45.02%, above the examined Malaysia SAC financial 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 screen already fails.
Business-activity disclosure
Gildan manufactures and sells activewear, hosiery and underwear, including basic apparel and the newly consolidated HanesBrands business. Clothing manufacturing is generally permissible, while product presentation, licensing, labor, sourcing and held-for-sale operations require qualitative review.
Limitation: The filing does not allocate every product, brand, customer or end use into a universal prohibited-activity numerator and does not separately disclose gross interest income.
Purification
Gross interest income is unavailable in the examined filing; no purification percentage is inferred from net financial expenses.
Inputs, assumptions and primary sources
- Amounts are USD millions from Gildan's March 29, 2026 interim financial statements.
- Debt combines $450.000 million of current long-term debt and $4,265.100 million of long-term debt; operating leases are excluded.
- Cash and cash equivalents are $237.055 million; no separate interest-bearing securities balance is identified.
- Trade accounts receivable are $1,009.678 million and first-quarter net sales are $1,165.944 million.
- Gross interest income is not separately disclosed; financial expenses include $52.419 million of interest expense and other financing charges.
- The first full period of HanesBrands consolidation and assets held for sale are included as presented by the issuer.
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.
Gildan's March 29, 2026 interim statements report $10,473.214 million of assets and $4,715.1 million of interest-bearing debt, or 45.02% debt/assets. Cash/assets is 2.26% and receivables-plus-cash/assets is 11.90%; those passes do not cure the debt failure. Gross interest income is not separately 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)
What Gildan Does
Gildan Activewear Inc. (headquartered in Montreal, Canada) is a vertically integrated apparel manufacturer:
- Activewear: T-shirts, fleece, and sport shirts sold largely to printwear distributors.
- Hosiery and underwear: Socks and underwear under owned and licensed brands.
- Vertical manufacturing: Owned yarn-spinning, textile, and sewing operations.
Manufacturing and selling basic clothing is a permissible activity, so the business-activity screen passes, and basic apparel carries no modesty concern.
Why It Passes (and What to Check)
1. Permissible Core Business
Gildan's revenue comes from manufacturing basic apparel — a clearly permissible activity with no modesty or haram concern. There is no haram revenue line.
2. Debt Ratio (Screen to Check)
Gildan carries interest-bearing debt and funds capital-intensive vertical manufacturing, so confirm the total-debt-to-market-cap ratio against the 33% threshold using the latest filings.
3. Interest Income (Purify)
Gildan earns incidental interest income on cash. This should be checked against the 5% threshold and the corresponding portion of returns purified.
Current Quantitative Screen (March 29, 2026)
- Debt / assets: 45.02% — $4,715.1 million / $10,473.214 million (fails 33.333%)
- Cash / assets: 2.26% — $237.055 million / $10,473.214 million
- Receivables + cash / assets: 11.90% — $1,246.733 million / $10,473.214 million
- Interest income: Gross amount unavailable in the examined filing
The quantitative result is DOUBTFUL because debt/assets exceeds the displayed asset-based limit. The HanesBrands acquisition and held-for-sale presentation make the next filing especially important; market-cap methods and product-level activity review remain separate.
What About Purification?
Purify the portion of returns attributable to interest income earned on Gildan's cash balances — donating that share of gains to charity.
How to Read the Result
Gildan's basic-apparel business is qualitatively permissible, but GIL is DOUBTFUL on the current filing-based screen. This is ZakatInvest's reproducible analysis, not an official outside-agency classification.
Bottom Line
Gildan (GIL) is doubtful on the current examined screen. The basic-apparel business is generally permissible, but debt/assets is 45.02% under the displayed asset-based test. Re-screen after debt changes and consult a qualified adviser for a school-specific market-cap methodology.
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