The Short Answer
Goodyear stock (GT) is doubtful under standard Sharia screening. Manufacturing tires is itself a clearly permissible activity with no haram revenue line. The complication is financial: Goodyear carries a large amount of interest-bearing debt relative to its market capitalization, and its total-debt-to-market-cap ratio frequently exceeds the 33% threshold.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
6,985 / 18,469
723 / 18,469
3,325 / 18,469
6 / 3,881
- Financial
- Fails
- Overall
- Fails
Debt/assets is 37.82%, above the examined 33.333% limit; tire activity remains qualitative.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 37.82%, above the examined MSCI limit; the asset-based screen fails.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 37.82%, above the examined Malaysia limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical market-cap series is not stored; the debt screen already fails.
Business-activity disclosure
Goodyear manufactures and sells tires and related mobility products. Tire manufacturing is generally permissible, while chemical, fleet, automotive and customer end-use exposure require qualitative review.
Limitation: The filing does not allocate revenue by downstream end use or provide a universal prohibited-revenue numerator.
Purification
Interest income of $6 million (0.15% of quarterly net sales) is disclosed for transparency; no scholar-approved purification percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from Goodyear's March 31, 2026 Form 10-Q.
- Debt combines notes payable and overdrafts of $483 million, long-term debt and finance leases due within one year of $1,226 million and long-term debt and finance leases of $5,276 million.
- Cash is $723 million; no separate interest-bearing securities balance is identified.
- Accounts receivable, net are $2,602 million.
- Interest income is $6 million (0.15% of quarterly net sales); tire and chemical divestiture activity and customer end use 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.
Because the deciding factor is leverage that typically sits above the limit, the stock is best treated as doubtful pending confirmation of the debt ratio on the latest filings. Interest income is incidental, but the heavy reliance on debt financing is the core screening concern.
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)
Goodyear's Business Activity
The Goodyear Tire & Rubber Company is one of the world's largest tire manufacturers. Its activity is:
- Consumer tires: Tires for passenger cars and light trucks
- Commercial tires: Tires for trucks and other commercial vehicles
- Retail & service: A large company-owned retail and service network
The product is permissible; the deciding factor is the company's heavy debt load.
Why GT Is Doubtful
1. Heavy Interest-Bearing Debt
Goodyear carries a large amount of interest-bearing debt relative to its market capitalization, and its total debt / market cap frequently exceeds the 33% Sharia threshold. This is the deciding factor and is why the stock is treated as doubtful rather than clearly halal.
2. Debt-Dependent Verdict
The verdict is debt-dependent and can change as the company executes its transformation plan and pays down debt. Confirm the debt ratio on the latest filings before investing rather than relying on past results.
3. Interest on Cash to Purify
Incidental interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified, though leverage — not interest income — is the binding screen here.
Current Filing-Based Quantitative Screen
Goodyear's March 31, 2026 Form 10-Q reports debt/assets of 37.82%, liquidity/assets of 3.91%, and receivables-plus-cash/assets of 18.00%. The debt ratio exceeds the examined asset-based limits. Disclosed interest income is $6 million, or 0.15% of quarterly net sales.
- Debt / assets: 37.82% — above the examined 33.333% limits ❌
- Liquidity / assets: 3.91% — below the examined limits ✅
- Receivables + cash / assets: 18.00% — below the examined limits ✅
- Business activity: Tire manufacturing is generally permissible; automotive end use remains qualitative ⚠️
Methodology Interpretation
The stored record applies transparent total-assets proxies for FTSE Yasaar, MSCI Islamic and Malaysia SAC-style tests. All three fail on debt/assets; the market-cap denominator and prohibited-revenue allocation are not stored, and no third-party app classification is asserted.
- FTSE Yasaar-style asset tests: fail on debt
- MSCI Islamic-style asset tests: fail on debt
- Malaysia SAC-style ratios: fail on debt
- Market-cap denominator: not calculated from a reproducible licensed series
Bottom Line
Goodyear (GT) is doubtful for Muslim investors. The tire business is permissible, but the company's heavy interest-bearing debt frequently pushes total debt / market cap above the 33% threshold — the deciding screen. Confirm the debt ratio on the latest filings before investing; for many investors it will not pass, pushing the verdict toward non-compliant.
For lower-debt auto-supply exposure, compare GT with peers like Aptiv (APTV), Genuine Parts (GPC), and PACCAR (PCAR). Review our guide to haram investments to avoid for cleaner alternatives.
GT's heavy debt usually pushes the leverage screen above the threshold. Use our screener to find clearer halal alternatives.
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