The Short Answer
Merit Medical stock (MMSI) has a qualitative business verdict that is HALAL and passes the known filing-based financial ratios, but the overall screen remains incomplete. Merit Medical manufactures disposable and implantable medical devices.
Medical-device manufacturing is generally permissible at the activity level. The March 31, 2026 filing reports debt/assets of 27.04%, below the examined 33% limits; the activity numerator remains qualitative.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
735.16 / 2,719.284
488.08 / 2,719.284
694.526 / 2,719.284
3.9 / 381.877
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 27.04%, liquidity/assets is 17.95%, receivables-plus-cash/assets is 25.54% and disclosed interest income is 1.02%; activity remains qualitative.
- Financial
- Pass
- Overall
- Incomplete
Known debt, liquidity and receivables-plus-cash ratios are below the examined MSCI limits; this is not an index-membership claim and activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets and identifiable liquidity/assets are below the examined Malaysia limits; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; filing-based asset ratios remain documented.
Business-activity disclosure
Merit Medical designs and manufactures single-use and implantable medical devices for cardiology, radiology, endoscopy and related clinical procedures. The core medical-device activity is generally permissible, but the filing does not provide a universal prohibited-revenue numerator for product or customer end uses.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed; product and customer allocation remains qualitative.
Purification
The filing discloses $3.900 million of interest income; ZakatInvest does not prescribe a fixed scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Merit Medical's March 31, 2026 Form 10-Q.
- Interest-bearing debt is $735.160 million of long-term debt; operating-lease liabilities are excluded.
- Cash and cash equivalents are $488.080 million, including the filing's $4.271 million of U.S. Treasury debt securities recorded as cash equivalents; no additional securities are added. Net accounts receivable are $206.446 million.
- First-quarter net sales are $381.877 million and disclosed interest income is $3.900 million (1.02% of revenue).
- Medical-device manufacturing is retained as qualitative analysis; no universal prohibited-revenue numerator is disclosed.
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)
Merit Medical's Business Activity
Merit Medical designs, manufactures, and sells:
- Cardiovascular devices: Single-use products for interventional and diagnostic procedures
- Endoscopy devices: Products for therapeutic and diagnostic endoscopy
- Implantable products: Devices used in oncology, critical-care, and radiology
These are general-purpose healthcare and medical-device businesses — manufacturing products used in medical procedures. This is permissible at the activity level.
Concerns to Be Aware Of
1. Leverage Profile
Merit reports $735.160 million of long-term debt against $2,719.284 million of assets. The filing-based debt/assets ratio is 27.04%; a licensed market-cap denominator is not calculated here, so leverage should be re-verified after acquisitions.
2. Regulatory and Reimbursement Dependence
The medical-device business depends on reimbursement, regulatory clearances, physician-adoption, and elective-procedure volumes. These are business and regulatory considerations rather than Sharia screen concerns.
3. Minor Interest Income
The filing discloses $3.900 million of interest income, or 1.02% of quarterly revenue. ZakatInvest does not prescribe a fixed scholar-approved purification percentage; Merit does not currently pay a dividend.
Filing-Based Ratios (March 31, 2026)
Using Merit Medical's latest Form 10-Q (USD millions):
- Debt / total assets: 27.04%
- Cash + securities / total assets: 17.95%
- Receivables + cash / total assets: 25.54%
- Disclosed interest income / revenue: 1.02%
Methodology Interpretation
These are ZakatInvest calculations from the cited filing, not claims of current index membership or an official scholar ruling:
- FTSE-style: Known financial ratios pass; activity remains qualitative.
- MSCI-style: Known financial ratios pass; this is not an index-membership claim.
- Malaysia-style: Known debt and liquidity ratios pass; this is not an official classification.
Bottom Line
Merit Medical (MMSI) has a generally permissible medical-device business and passes the known filing-based ratios. Because no universal prohibited-revenue numerator is disclosed, the overall result remains incomplete rather than a universal halal certification; consult the methodology you follow.
For Muslim investors seeking medical-device exposure, MMSI sits alongside other halal-screened names like Boston Scientific (BSX) and Becton Dickinson (BDX).
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