The Short Answer
Levi Strauss stock (LEVI) is generally considered halal by most Islamic scholars and Sharia screening criteria — the apparel business is permissible and the company carries a moderate, manageable leverage profile.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-05-31; calculated 2026-07-15.
1,043 / 6,627.5
977.8 / 6,627.5
1,435.5 / 6,627.5
- Financial
- Incomplete
- Overall
- Incomplete
Debt/assets is 15.74%, liquidity/assets is 14.75% and receivables-plus-cash/assets is 21.66%; known ratios pass the examined FTSE limits, while gross interest income is unavailable.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets, liquidity/assets and receivables-plus-cash/assets are below the examined MSCI total-assets limits; income and business activity remain incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 15.74% and identifiable liquidity/assets is 14.75%, below the examined Malaysia limits; this is not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A licensed historical market-cap series is not stored.
Business-activity disclosure
Levi Strauss designs, markets and distributes jeans, casual apparel, footwear and accessories under Levi's, Dockers, Beyond Yoga and related brands. Apparel and consumer products are generally permissible, but product-specific activity and marketing are not reduced to a universal prohibited-revenue numerator.
Limitation: The filing does not classify every product, licensee, marketing practice or customer end use by a universal Sharia category; activity remains qualitative.
Purification
Levi Strauss does not separately disclose gross interest income in this filing; no purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions from Levi Strauss's May 31, 2026 Form 10-Q.
- Interest-bearing debt is $1,043.0 million of senior notes; operating lease liabilities are excluded.
- Cash and cash equivalents are $849.3 million and short-term marketable securities are $128.5 million.
- Net trade receivables are $586.2 million and second-quarter net revenue is $1,562.0 million.
- The filing reports interest expense and other income, net but does not separately isolate gross interest income, so the income numerator is unavailable.
- Apparel, footwear and accessories are generally permissible, while brand marketing, licensing and product-specific activity remain 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.
Designing and selling jeans, casual wear, and accessories is a permissible activity, and Levi Strauss earns product revenue rather than interest. Because the company carries interest-bearing senior notes, leverage remains a primary screening consideration; a market-cap denominator requires a licensed historical series and is not calculated here.
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)
Levi Strauss's Business Activity
Levi Strauss is a global apparel company. Its products and brands include:
- Levi's: Jeans, tops, and casual wear — the flagship brand
- Dockers and Signature: Casual and value apparel lines
- Beyond Yoga: Activewear acquired to broaden the portfolio
Designing and selling clothing is permissible at the activity level — it is an ordinary consumer-products business.
Concerns to Be Aware Of
1. Debt Ratio
Levi Strauss carries interest-bearing senior notes. The transparent filing-based debt/assets ratio is shown above; any market-cap denominator should be checked separately with the methodology and data source used by the investor.
2. Conventional Debt Instruments
Senior notes are conventional, interest-bearing instruments. Investors who object to any such issuance should weigh this even where the debt ratio passes the 33% screen.
3. Interest Income on Cash
Confirm the interest-income-to-revenue ratio against the 5% threshold and purify the corresponding portion of returns.
Filing-Based Ratios (May 31, 2026)
Based on Levi Strauss's latest Form 10-Q, using total assets as the transparent denominator:
- Interest-bearing debt / assets: 15.74% — below the examined 33.33% limit ✅
- Cash + securities / assets: 14.75% — below the examined 33.33% limit ✅
- Receivables + cash / assets: 21.66% — below the examined 50% limit ✅
- Gross interest income / revenue: Unavailable; the filing reports net interest information ⚠️
- Haram Revenue: Negligible (apparel) ✅
- Business Activity: Permissible consumer products ✅
Methodology Interpretation
The filing-based financial rows are transparent calculations, not claims of current index membership:
- FTSE Yasaar asset ratios — known financial ratios pass; overall result is incomplete because gross interest income is unavailable ⚠️
- MSCI total-assets series — known financial ratios pass; income and activity remain incomplete ⚠️
- Malaysia SAC asset ratios — known financial ratios pass; this is not an official classification ⚠️
Bottom Line
Levi Strauss (LEVI) remains generally halal on its qualitative business activity. The May 31, 2026 filing-based asset ratios pass the examined limits, but gross interest income is unavailable, so the quantitative result is incomplete rather than a blanket certification. Investors should review the primary filing and consult their preferred scholar or screening methodology before investing.
For Muslim investors seeking apparel exposure, LEVI sits alongside other names worth screening like Ralph Lauren (RL) and Tapestry (TPR).
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