The Short Answer
Leggett & Platt stock (LEG) is currently classified as HALAL in the qualitative catalog, but the current filing-based quantitative result does not pass. Engineered bedding, furniture, automotive and industrial components are generally permissible.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
1,498.2 / 3,519.1
510.5 / 3,519.1
1,030.7 / 3,519.1
1.9 / 918.2
- Financial
- Fails
- Overall
- Fails
Debt/assets is 42.57%, above the examined 33.333% limit; liquidity/assets is 14.51%, receivables-plus-cash/assets is 29.29% and disclosed interest income is 0.21%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 42.57%, above the examined MSCI 33.33% limit; liquidity/assets and receivables-plus-cash/assets remain below their limits.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 42.57%, above the examined Malaysia limit; liquidity/assets is 14.51%. This is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A properly licensed and reproducible historical market-cap series is not stored; asset-based debt screening already fails.
Business-activity disclosure
Leggett & Platt manufactures engineered bedding, furniture, automotive and industrial components. The core manufacturing activity is generally permissible, while downstream end-use allocation remains qualitative.
Limitation: The filing does not provide a universal prohibited-revenue numerator across product and customer categories.
Purification
The filing discloses $1.9 million of interest income, but no scholar-specific purification instruction or universal prohibited-revenue numerator is provided.
Inputs, assumptions and primary sources
- Amounts are USD millions from Leggett & Platt's March 31, 2026 Form 10-Q for the three months ended that date.
- Interest-bearing debt is $1,496.6 million long-term debt plus $1.6 million current debt; operating lease liabilities are excluded.
- Cash is $510.5 million; receivables combine $487.1 million trade receivables and $33.1 million other receivables.
- The filing discloses $1.9 million of interest income, approximately 0.21% of quarterly revenue.
- Engineered bedding, furniture, automotive and industrial components are generally permissible, but no universal prohibited-revenue numerator is asserted.
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.
The March 31, 2026 filing shows interest-bearing debt/assets of 42.57%, liquidity/assets of 14.51%, and receivables plus cash/assets of 29.29%. The debt screen fails; disclosed interest income is $1.9 million, or approximately 0.21% of quarterly revenue.
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)
Leggett & Platt's Business Activity
Leggett & Platt, Incorporated makes engineered components. Its activity is:
- Bedding products: Innersprings, specialty foam, and adjustable bases
- Furniture and flooring: Mechanisms, supports, and underlay
- Specialized products: Automotive seating supports and industrial wire
Manufacturing and selling these components is a clearly permissible activity with no haram revenue line.
Why LEG Is Halal
1. Permissible Core Business
Manufacturing engineered components is a halal industrial business that supplies the bedding, furniture, and automotive supply chains. There is no gambling, alcohol, conventional banking, or other prohibited line at the heart of the business.
2. Debt Ratio Is the Item to Watch
The filing-based interest-bearing debt/assets ratio is 42.57%, above the examined limits. Restructuring and debt obligations should be monitored.
3. Interest on Cash to Purify
Disclosed interest income is 0.21% of quarterly revenue; no fixed purification percentage or universal prohibited-revenue numerator is asserted.
Filing-Based Ratios (March 31, 2026)
Based on Leggett & Platt's latest Form 10-Q:
- Debt / Total Assets: 42.57% — above examined limits ⚠️
- Liquidity / Total Assets: 14.51% ✅
- Receivables + Cash / Total Assets: 29.29% ✅
- Disclosed Interest Income / Revenue: 0.21% ⚠️
- Prohibited-Product Revenue: No universal numerator disclosed — qualitative review required ⚠️
Methodology Interpretation
The current filing-based asset screen fails on debt/assets under the examined FTSE, MSCI and Malaysia-style limits. Engineered-components manufacturing remains generally permissible, but end-use allocation and purification treatment require review.
- Core activity: Bedding, furniture, automotive and industrial components
- Quantitative status: Debt fails; other known ratios pass
- Scholar review: Confirm income and downstream end-use treatment
Bottom Line
Leggett & Platt (LEG) has a generally permissible core activity, but the current filing-based result is not passing because interest-bearing debt/assets are 42.57%.
For Muslim investors seeking industrial and consumer-durables exposure, compare LEG with peers like Stanley Black & Decker (SWK) and Mohawk Industries (MHK).
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