The Short Answer
Manhattan Associates (MANH) has a qualitative business verdict that is HALAL, but the overall financial result depends on the methodology. Manhattan Associates is a leading developer of supply-chain-management and omnichannel-commerce software.
Enterprise-software development is generally permissible at the activity level. The March 31, 2026 filing reports no debt and liquidity below the examined limits, but receivables plus cash are 61.20% of assets, above the FTSE-style and MSCI-style limits.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
0 / 740.538
226.133 / 740.538
453.243 / 740.538
0.951 / 282.215
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 61.20%, above the examined 50% limit; debt/assets is 0.00%, liquidity/assets is 30.54% and disclosed interest income is 0.34%.
- Financial
- Fails
- Overall
- Fails
Receivables-plus-cash/assets is 61.20%, above the examined MSCI 33.33% total-assets limit; this is not an index-membership claim.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 0.00% and identifiable liquidity/assets is 30.54%, below the examined Malaysia limits; activity remains qualitative and this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; methodology-specific asset ratios remain documented.
Business-activity disclosure
Manhattan Associates develops warehouse, transportation, inventory and omnichannel-commerce software, increasingly delivered through its cloud-native platform. Enterprise software and supply-chain technology are generally permissible, but the filing does not provide a universal prohibited-revenue numerator for downstream customers.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed; customer end-use remains qualitative.
Purification
The filing reports $0.951 million of interest income; ZakatInvest does not prescribe a fixed scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Manhattan Associates' March 31, 2026 Form 10-Q.
- The filing reports no interest-bearing debt or credit-facility borrowings at period end; operating leases are excluded.
- Cash and cash equivalents are $226.133 million; no separately identified interest-bearing securities balance is added; accounts receivable, net is $227.110 million.
- First-quarter revenue is $282.215 million and reported interest income is $0.951 million (0.34% of revenue).
- Receivables-plus-cash/assets is 61.20%, above FTSE's 50% and MSCI's 33.33% examined limits, while Malaysia's named asset ratios pass.
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)
Manhattan Associates' Business Activity
Manhattan Associates develops and sells:
- Supply-chain software: Warehouse-management and transportation-management systems
- Inventory and order management: Inventory-optimization and omnichannel-commerce solutions
- Cloud platform: The cloud-native Manhattan Active subscription suite
These are general-purpose enterprise-software businesses — building applications that companies use to run their operations. This is permissible at the activity level.
Concerns to Be Aware Of
1. End-Market Look-Through
Manhattan Associates' software is sold into mixed-Sharia-profile end-markets (retail, consumer-goods, logistics, and wholesale). Under standard methodology, the relevant classification is general-purpose enterprise-software development rather than the look-through end-customer mix.
2. Business-Cycle Sensitivity
Earnings can be sensitive to enterprise-IT-spending cycles and the timing of large software and implementation deals as the business transitions to cloud subscriptions. This is a business-cycle consideration rather than a Sharia screen concern.
3. Minor Interest Income
The filing reports $0.951 million of interest income, or 0.34% of quarterly revenue. ZakatInvest does not prescribe a fixed purification percentage.
Filing-Based Ratios (March 31, 2026)
Using the latest Manhattan Associates Form 10-Q (USD millions):
- Debt / total assets: 0.00%
- Cash + securities / total assets: 30.54%
- Receivables + cash / total assets: 61.20% — above FTSE-style and MSCI-style limits
- Disclosed interest income / revenue: 0.34%
Methodology Interpretation
These are ZakatInvest calculations from the cited filing, not claims of current index membership or an official scholar ruling:
- FTSE-style: Fails the 50% receivables-plus-cash ratio.
- MSCI-style: Fails the 33.33% receivables-plus-cash ratio.
- Malaysia-style: Known debt and liquidity ratios pass; this is not an official classification.
Bottom Line
Manhattan Associates (MANH) has a generally permissible software business and no reported interest-bearing debt, but its 61.20% receivables-plus-cash ratio fails the FTSE-style and MSCI-style limits while passing the examined Malaysia-style ratios. The result is methodology-dependent, not a universal halal certification.
For Muslim investors seeking enterprise-software exposure, MANH sits alongside other halal-screened names like Descartes Systems (DSGX) and Veeva (VEEV).
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