Quick Verdict
ZakatInvest classifies The Home Depot (HD) as doubtful. Selling building materials, tools, lawn and garden products, decor, maintenance supplies and related installation, rental and trade-distribution services is generally permissible commerce. But Home Depot's May 2026 interest-bearing debt is 49.59% of total assets, above every total-assets limit examined below. Its filing also does not disclose a reproducible Sharia-screened revenue numerator for individual products, services, credit, rental, supplier-finance or other activities.
That result does not call all of Home Depot's business prohibited, and it does not infer a prohibited-revenue percentage from broad product lines. It keeps the permissible core activity, the financial result and the remaining evidence gaps visible together.
What Home Depot's Business Includes
Home Depot's latest filing describes a primary retail segment selling home-improvement products, building materials, lawn and garden products, decor, and maintenance, repair and operations products in stores and online. It also provides home-improvement installation plus tool and equipment rental. Its SRS operations distribute roofing and building products, interior and construction products, and landscape and pool supplies.
For the three months ended May 3, 2026, Home Depot reported $41.765 billion in net sales: $12.971 billion of building materials, $12.605 billion of decor, $12.187 billion of hardlines and $4.002 billion in its Other segment. Product sales were $40.436 billion and services were $1.329 billion. These broad classifications are useful context, but do not label each item or contract by a Sharia-screened category.
Current Financial Screening
The calculation below uses Home Depot's latest available Form 10-Q as of this review and links directly to the official filing at the SEC. Balance-sheet inputs are dated May 3, 2026, and sales use the matching three-month period.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-05-03; calculated 2026-07-13.
53,509 / 107,904
1,601 / 107,904
8,225 / 107,904
- Financial
- Fails
- Overall
- Fails
Debt is 49.59% of total assets and exceeds the 33.333% limit. Identifiable liquidity is 1.48% and receivables plus cash is 7.62%, but the debt failure determines the financial result; gross interest income and screened business revenue are not separately disclosed.
- Financial
- Fails
- Overall
- Fails
Debt is 49.59% and exceeds the examined 33.33% total-assets limit. Liquidity and receivables-plus-cash are below the examined limits, but debt determines the result; public revenue disclosure remains insufficient for a complete business screen.
- Financial
- Fails
- Overall
- Fails
Debt is 49.59% and exceeds the examined 33% total-assets limit. This is a calculation against the SAC ratios, not an official SAC classification of a U.S.-listed security; screened business revenue remains unavailable.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible 24- or 36-month issuer market-cap history is not yet stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Home Depot retails home-improvement products, building materials, lawn and garden, decor and maintenance, repair and operations products; it also provides installation, tool and equipment rental, and SRS specialty-trade distribution. Building, repair, maintenance, landscaping and general-purpose tools and materials are generally permissible commercial activities, while specific goods, services and contracts require evidence rather than a portfolio-wide assumption.
Limitation: The filing provides broad product lines and total product and service sales, not a Sharia-screened classification of merchandise, service, rental, credit, supplier-finance or other revenue. The presence or absence of a separately disclosed category cannot establish a zero prohibited-revenue numerator, so an exact business-activity percentage cannot be reproduced from consolidated disclosure.
Purification
The filing does not separately disclose gross interest income; its combined net interest-income-and-other line cannot be converted into a gross non-compliant-income numerator. Screened operating revenue is also unavailable, so ZakatInvest does not prescribe a fixed purification rate.
Inputs, assumptions and primary sources
- Interest-bearing debt is the reported 3,503 of short-term commercial-paper borrowings plus 5,178 of current installments of long-term debt plus 44,828 of long-term debt, excluding current installments. This conservatively includes the 292 current and 2,640 long-term finance-lease liabilities that the filing includes within the long-term-debt captions.
- Cash and cash equivalents use the reported 1,601 balance. The filing does not separately identify a balance of interest-bearing securities for this screen.
- Receivables use the reported 6,624 net receivables balance, including card, rebate, customer and other receivables. The filing says card receivables are payments due from financial institutions for settled credit- and debit-card transactions.
- Net sales of 41,765 use the three months ended May 3, 2026. The filing reports interest income and other as a combined net amount of negative 7 and interest expense of 611; it does not separately disclose gross interest income, so no income-screen numerator is inferred.
- The filing reports broad building-materials, decor, hardlines and SRS sales, plus product and service sales, but not a Sharia-screened numerator for individual merchandise, installation, rental, trade-credit, card, supplier-finance or other activities.
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.
What the Numbers Show
The conservative debt numerator is $53.509 billion: $3.503 billion of short-term commercial-paper borrowings, $5.178 billion of current installments of long-term debt and $44.828 billion of long-term debt. The long-term-debt captions include $292 million of current and $2.640 billion of long-term finance-lease liabilities. The $53.509 billion total equals 49.59% of $107.904 billion in assets, exceeding the examined 33%, 33.33% and 33.333% limits.
Cash is 1.48% of assets, while net receivables plus cash is 7.62%. The receivables input is intentionally broad: it includes card, rebate, customer and other receivables. The filing says card receivables are payments due from financial institutions after credit- and debit-card transactions are settled. It reports interest income and other only as a combined net amount, so ZakatInvest does not convert that line into an unsupported gross-interest-income or purification percentage.
Market-cap methodologies can produce different ratios because they use a historical average market-value denominator. ZakatInvest does not substitute today's share price for a reproducible 24- or 36-month history, so those methods remain not calculated.
Credit, Debt and Supplier Finance
The original asset record correctly noted that credit arrangements deserve attention. Home Depot's filing identifies demand for credit offerings and trade credit, a commercial-paper program, senior notes, interest-rate swaps and a supplier-finance program. At May 3, 2026, its commercial-paper borrowings were $3.5 billion at a weighted-average interest rate of 3.8%, while its swap agreements had a combined $5.4 billion notional amount.
The company says participating suppliers may elect early payment from financial institutions at a discount, that Home Depot is not party to those agreements, and that it does not reimburse suppliers' participation costs. Those facts help distinguish roles in the arrangement, but they do not settle every contract-level or methodology-specific Sharia question. Public reporting also does not isolate the relevant revenue or economic benefit as a screened numerator.
Products, Services and Use-Specific Review
Building, maintenance and repair can meet clear household and community needs. Yet a broad merchandise label cannot determine every product's ingredients, safety profile, purpose or end use. Chemicals, coatings, adhesives, pest-control products, wood, animal-derived materials, alcohol-containing products, equipment and individual service contracts require product- and use-specific evidence where a chosen Sharia method treats those details as material.
Installation, tool rental and trade distribution should likewise be assessed by the actual service and contract rather than assumed permissible or prohibited as a whole. The filing's aggregate product and service revenue does not permit a reproducible prohibited-revenue calculation, which is why this analysis does not claim a fixed percentage.
Safety, Labor, Sourcing and Stewardship
A qualitative screen includes more than financial ratios. Product quality, recalls, hazardous-material handling, renter and contractor safety, installation standards, worker safety, data privacy and cybersecurity can affect customers, workers and communities. Supplier working conditions, wages, wood and mineral sourcing, chemicals, waste, water, packaging, transport, energy use and nearby-community impacts raise questions of justice and stewardship.
These are not accusations about every product, supplier or site. They are categories for evidence-based, outcome-focused review. Policies and targets can be relevant, but should be assessed alongside measured implementation, independent assurance, remedies and changing operating practices.
Dividend and Purification
Home Depot declared a $2.33 quarterly dividend in May 2026. The live yield changes with the share price and is intentionally not hard-coded. Its reported combined net interest-income-and-other line is not a disclosed gross interest-income figure, and screened operating revenue is unavailable; ZakatInvest therefore does not prescribe a fixed purification rate from incomplete information.
Bottom Line
HD is doubtful in ZakatInvest's canonical classification. Home-improvement retail, repair, materials and tools have generally permissible and potentially beneficial purposes. The current total-assets financial screens fail because interest-bearing debt is 49.59% of assets, while the public filing lacks an exact screened business-revenue and purification numerator. This is a screening classification, not a fatwa or investment recommendation; apply your chosen methodology with a qualified Sharia adviser for a binding ruling.
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