The Short Answer
Lear stock (LEA) is considered halal under standard Sharia screening, subject to a debt check. Manufacturing automotive seating and electrical-distribution systems is a clearly permissible activity with no haram revenue line of its own. The main item to confirm is the balance sheet.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-04; calculated 2026-07-15.
2,743.7 / 15,453.6
881.9 / 15,453.6
5,056.3 / 15,453.6
- Financial
- Incomplete
- Overall
- Incomplete
Debt/assets is 17.76%, liquidity/assets is 5.71% and receivables-plus-cash/assets is 32.72%; known ratios pass but the income numerator remains unavailable.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets, liquidity/assets and receivables-plus-cash/assets are below the examined MSCI limits; business disclosure remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 17.76% and liquidity/assets is 5.71%, below the examined Malaysia limits; this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A properly licensed and reproducible historical market-cap series is not stored; known asset-based ratios pass but the income and business inputs remain incomplete.
Business-activity disclosure
Lear manufactures automotive seating, electrical distribution and electronics systems for vehicle manufacturers. Automotive components are generally permissible, while vehicle end use, customer concentration and safety obligations require qualitative review.
Limitation: The filing does not allocate revenue by vehicle end use or provide a universal prohibited-revenue or non-compliant-income numerator.
Purification
The filing reports net interest expense but no reproducible gross non-compliant-income numerator; no fixed purification percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from Lear's April 4, 2026 Form 10-Q.
- Debt combines short-term borrowings of $28.3 million, current long-term debt of $3.8 million and long-term debt of $2,711.6 million.
- Cash is $881.9 million; no separate interest-bearing securities balance is identified.
- Accounts receivable are $4,174.4 million.
- The filing reports net interest expense but no reproducible gross non-compliant-income numerator; automotive component end use remains 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 Lear carries moderate debt to fund operations and acquisitions, its total-debt-to-market-cap ratio should be confirmed against the 33% threshold using the latest filings, with incidental interest income on cash checked against the 5% threshold and purified.
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)
Lear's Business Activity
Lear Corporation is a leading global automotive supplier. Its activity is:
- Seating: Complete seat systems and components for vehicles
- E-Systems: Electrical-distribution and electronics, including connection systems
- Global footprint: Supplying vehicle manufacturers worldwide
Making automotive components is a clearly permissible activity with no haram revenue line of its own.
Why LEA Is Halal
1. Permissible Core Business
Supplying automotive seating and electronics is a halal manufacturing business that serves the vehicle supply chain. There is no gambling, conventional banking, or other prohibited line at the heart of the business.
2. Debt Ratio Is the Main Screen
Lear carries moderate debt to fund operations and acquisitions, so total debt / market cap is the main screen. Confirm it sits under the 33% threshold on the latest filings before investing — it has generally screened within range.
3. Interest on Cash to Purify
Incidental interest income on cash should be confirmed against the 5% threshold and the corresponding small portion of returns purified. As a tier-one supplier, Lear's results are cyclical with global vehicle production.
Current Filing-Based Quantitative Screen
Lear's April 4, 2026 Form 10-Q reports debt/assets of 17.76%, liquidity/assets of 5.71%, and receivables-plus-cash/assets of 32.72%. Known asset-based ratios pass, but the filing reports no reproducible gross non-compliant-income numerator.
- Debt / assets: 17.76% — below the examined limits ✅
- Liquidity / assets: 5.71% — below the examined limits ✅
- Receivables + cash / assets: 32.72% — below the examined limits ✅
- Business activity: Automotive components are generally permissible; vehicle end use remains qualitative ⚠️
Methodology Interpretation
The stored record applies transparent total-assets proxies for FTSE Yasaar, MSCI Islamic and Malaysia SAC-style tests. Known asset ratios pass, but the FTSE income input, business disclosure and market-cap denominator remain incomplete; no third-party app classification is asserted.
- FTSE Yasaar-style asset tests: known ratios pass; income remains incomplete
- MSCI Islamic-style asset tests: known ratios pass; activity remains incomplete
- Malaysia SAC-style ratios: known ratios pass; activity remains incomplete
- Market-cap denominator: not calculated from a reproducible licensed series
Bottom Line
Lear (LEA) is halal for Muslim investors when the debt screen passes. The auto-supply business is permissible; confirm total debt / market cap under 33% on the latest filings before each purchase, and purify the minor portion of returns attributable to interest income on cash. Note that Lear is cyclical with global vehicle-production volumes.
For Muslim investors seeking auto-supply exposure, compare LEA with peers like Aptiv (APTV), Autoliv (ALV), and Genuine Parts (GPC).
Want to check if another stock is halal? Use our free screener.
Open Halal Checker →