The Short Answer
Novanta stock (NOVT) is doubtful on our current filing-based screen. Precision photonics and medical-component manufacturing is generally permissible, and the April 3, 2026 filing shows known asset ratios within the examined limits. Activity and gross-interest-income data are incomplete, so this is not an unconditional halal certification.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-03; calculated 2026-07-15.
241.421 / 1,799.055
388.799 / 1,799.055
562.733 / 1,799.055
- Financial
- Incomplete
- Overall
- Incomplete
Debt/assets is 13.42%, liquidity is 21.61% and receivables plus cash is 31.28%, below examined FTSE limits, but gross interest income is unavailable.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 13.42%, liquidity is 21.61% and receivables plus cash is 31.28%, below examined MSCI total-assets limits; activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 13.42% and liquidity is 21.61%, below the examined 33% limits; activity remains incomplete and this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored and activity classification remains incomplete.
Business-activity disclosure
Novanta manufactures precision photonics, vision and motion components for medical, life-science and industrial equipment. Enabling-technology manufacturing is generally permissible, while customer end uses require review.
Limitation: The filing does not provide a reproducible prohibited-revenue numerator for medical, industrial or customer end uses, and gross interest income is not separately disclosed.
Purification
Gross interest income is not separately disclosed and no scholar-approved purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions converted from Novanta's thousands-of-dollars presentation for April 3, 2026.
- Debt combines $40.416 million current and $201.005 million long-term debt; operating leases are excluded.
- Cash is $388.799 million and no separately identified interest-bearing securities are added.
- Accounts receivable is $173.934 million and first-quarter revenue is $257.707 million; gross interest income is not separately disclosed.
- The filing is Novanta's first fiscal quarter ended April 3, 2026.
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)
What Novanta Does
Novanta Inc. (headquartered in Bedford, Massachusetts) is a global supplier of core technologies used inside sophisticated medical and industrial equipment. Its business spans:
- Precision Medicine and Manufacturing: Lasers, optical scanning, and precision components used in minimally invasive surgery, DNA sequencing, ophthalmology, and industrial laser applications.
- Medical Solutions: Medical-grade visualization, sensing, and connectivity subsystems designed into surgical and diagnostic devices.
- Robotics and Automation: Precision motion-control components, motors, and controls for automation, robotics, and advanced-industrial equipment.
Novanta sells enabling technology to original-equipment manufacturers rather than finished consumer products. Its components are embedded deep inside medical and industrial machines.
Current Filing-Based Quantitative Screen
Based on Novanta's most recent financial statements:
- Debt / Assets: 13.42% — below the examined limits ✅
- Liquidity / Assets: 21.61% — below the examined limits ✅
- Receivables + Cash / Assets: 31.28% — below the examined limits ✅
- Business activity and income: Not fully quantifiable from the filing ⚠️
The known asset ratios pass the examined MSCI and Malaysia proxies. FTSE income treatment and activity remain incomplete; no official index membership or scholar ruling is implied.
Concerns to Be Aware Of
1. Acquisition-Related Debt
Novanta grows partly through acquisitions and funds some of that with debt. This is the most important screening item for the stock.
Action required: Confirm that total debt / market cap stays under the 33% threshold using the latest filings, since a large debt-funded deal could push the ratio up.
2. Manufacturer Receivables
As a component supplier to OEMs, Novanta carries trade receivables. Confirm the receivables ratio (total receivables / total assets) against your screening board's threshold (49–70%).
3. Minor Interest Income
Novanta earns small amounts of interest on cash balances.
Action required: Gross interest income is not separately disclosed in the filing, so do not infer a purification percentage; obtain scholar guidance or newer disclosure.
Methodology Interpretation
The current known financial result is PASS under the examined MSCI and Malaysia asset proxies, with FTSE and business-activity fields incomplete. This is our filing-based analysis, not a third-party classification.
- FTSE Yasaar asset screen — financial incomplete because gross interest income is unavailable
- MSCI total-assets proxy — financial pass
- Malaysia SAC asset ratios — financial pass
Bottom Line
Novanta (NOVT) is doubtful on the current filing-based screen. Its precision-technology business is generally permissible and known asset ratios pass, but activity and income data remain incomplete.
Re-screen after the next filing and obtain scholar guidance if missing activity or income data is material to your decision.
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