The Short Answer
Installed Building Products stock (IBP) is currently doubtful on our stored filing-based screen. Its installation business is generally permissible, but the March 31, 2026 filing shows debt/assets of 48.51%, 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.
1,081.6 / 2,229.8
474.3 / 2,229.8
900.7 / 2,229.8
- Financial
- Fails
- Overall
- Fails
Debt/assets is 48.51%, above the examined 33.333% limit; liquidity is 21.27% and receivables plus cash is 40.39%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 48.51%, above the examined 33.33% limit; receivables plus cash is also above the examined limit.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 48.51%, 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
Installed Building Products installs insulation and complementary building products for residential and commercial construction. The core service is generally permissible, subject to customer and project mix review.
Limitation: The filing does not provide a reproducible prohibited-revenue numerator for project 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 Installed Building Products' March 31, 2026 Form 10-Q and rounded to one decimal.
- Debt includes $35.6 million current and $1,035.4 million long-term debt plus $3.6 million current and $7.0 million long-term finance-lease obligations; operating leases are excluded.
- Cash is $474.3 million and no separately identified interest-bearing securities are added.
- Accounts receivable is $426.4 million and first-quarter revenue is $660.5 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)
Installed Building Products' Business Activity
Installed Building Products, Inc. is one of the largest installers of building products in the United States. Its activity is:
- Insulation: Installing fiberglass, spray-foam, and other insulation in new construction
- Complementary products: Installing garage doors, waterproofing, shower doors, mirrors, and shelving
- Commercial services: Insulation and building-product installation for commercial projects
Installing building products is a clearly permissible services activity with no haram revenue line of its own.
Why IBP's Business Is Generally Permissible
1. Permissible Core Business
Installing insulation and building products is a halal services 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
IBP reports $1,081.6 million of interest-bearing debt against $2,229.8 million of assets, or 48.51%. That current debt proxy fails the examined screens; market-cap methods are not calculated here.
3. Receivables and Interest to Check
The filing reports cash of $474.3 million and accounts receivable of $426.4 million, or 40.39% combined with cash/assets. Gross interest income and a universal prohibited-revenue numerator are not separately disclosed.
Current Filing-Based Quantitative Screen
Based on Installed Building Products' March 31, 2026 Form 10-Q:
- Debt / Assets: 48.51% — fails the examined 33% limits ❌
- Liquidity / Assets: 21.27% — below the examined limits ✅
- Receivables + Cash / Assets: 40.39% — above the examined MSCI limit ⚠️
- 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 48.51%. 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
Installed Building Products (IBP) is doubtful on the current filing-based screen. The installation-services business is generally permissible, but debt/assets is 48.51% and the quantitative financial screen fails. Re-check after the next filing or a material refinancing.
For Muslim investors seeking building-products exposure, compare IBP with peers like TopBuild (BLD), Builders FirstSource (BLDR), and UFP Industries (UFPI).
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