The Short Answer
Graphic Packaging stock (GPK) is currently doubtful on our stored filing-based screen. The packaging business is generally permissible, but the March 31, 2026 filing shows debt/assets of 49.20%, above the examined financial limits.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
5,752 / 11,690
189 / 11,690
1,050 / 11,690
- Financial
- Fails
- Overall
- Fails
Debt/assets is 49.20%, above the examined 33.333% limit; liquidity is 1.62%, receivables plus cash is 8.98%, and income is unavailable.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 49.20%, above the examined 33.33% limit; the other known asset ratios are below their limits.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 49.20%, above the examined 33% limit. This is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset still fails the total-assets debt proxy.
Business-activity disclosure
Graphic Packaging manufactures paperboard packaging and related machinery for food, beverage and consumer products. Packaging is generally permissible, but customer end uses and product categories are mixed.
Limitation: The filing does not provide a reproducible prohibited-revenue numerator for customer end uses or a gross interest-income figure.
Purification
Gross interest income is not separately disclosed and no scholar-approved purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions from Graphic Packaging's March 31, 2026 Form 10-Q and rounded to the nearest million.
- Debt combines $549 million current debt and $5,203 million long-term debt; operating leases are excluded.
- Cash is $189 million; no separately identified interest-bearing securities are added.
- Accounts receivable is $861 million and first-quarter net sales are $2,156 million; gross interest income is not separately disclosed.
- The quantitative result is a filing-based proxy, not an index membership or scholar-issued fatwa.
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.
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)
Graphic Packaging's Business Activity
Graphic Packaging Holding Company is a leading maker of fiber-based consumer packaging. Its activity is:
- Paperboard: Manufacturing coated recycled and unbleached board at its mills
- Cartons and cups: Converting board into folding cartons, cups, and food-service packaging
- Sustainable packaging: Fiber-based alternatives to plastic for consumer brands
Manufacturing paper-based packaging is a clearly permissible activity with no haram revenue line of its own.
Why GPK's Business Is Generally Permissible
1. Permissible Core Business
Making paperboard cartons and cups for food and consumer goods is a halal manufacturing business. There is no gambling, conventional banking, alcohol, or other prohibited line at the heart of the business.
2. Debt Ratio Is the Main Screen
The March 31, 2026 filing reports $5,752 million of interest-bearing debt against $11,690 million of assets, or 49.20%. That current debt proxy fails the examined screens; market-cap methods are not calculated here.
3. Receivables and Interest to Check
The same filing reports cash of $189 million and accounts receivable of $861 million, or 8.98% combined with cash/assets. Gross interest income and a universal prohibited-revenue numerator are not separately disclosed.
Current Filing-Based Quantitative Screen
Based on Graphic Packaging's March 31, 2026 Form 10-Q:
- Debt / Assets: 49.20% — fails the examined 33% limits ❌
- Liquidity / Assets: 1.62% — below the examined limits ✅
- Receivables + Cash / Assets: 8.98% — below the examined limits ✅
- Business activity: Generally permissible, but activity revenue is not quantified ⚠️
Methodology Interpretation
The known financial result is FAIL under the examined FTSE Yasaar, MSCI and Malaysia proxies because debt/assets is 49.20%. No third-party index membership or scholar ruling is implied.
- FTSE Yasaar asset screen — financial FAIL
- MSCI total-assets proxy — financial FAIL
- Malaysia SAC asset ratios — financial FAIL
Bottom Line
Graphic Packaging (GPK) is doubtful on the current filing-based screen. The packaging-manufacturing business is generally permissible, but debt/assets is 49.20% and the quantitative financial screen fails. Re-check after the next filing or a material refinancing.
For Muslim investors seeking packaging exposure, compare GPK with peers like Packaging Corp (PKG), Amcor (AMCR), and Silgan (SLGN).
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