The short answer
On Holding (ONON) is HALAL on ZakatInvest's qualitative core-business assessment, but the examined total-assets financial screens fail because liquidity is above the named limits. On designs and sells performance footwear, apparel and accessories. That business is generally permissible, while cash-equivalent treatment, lease liabilities, sponsorships and customer activity still warrant review.
This is a reproducible research screen, not a fatwa or investment recommendation. Scholars and screening providers can differ on short-term deposits, lease liabilities, market-cap denominators and how downstream marketing or sponsorship activity should be assessed.
Current quantitative Sharia screen
Based on 20-F figures for the period ended 2025-12-31; calculated 2026-07-13.
0 / 2,835.4
1,039.8 / 2,835.4
1,325.3 / 2,835.4
30.9 / 3,014
- Financial
- Fails
- Overall
- Fails
Debt is 0.00%, receivables plus cash are 46.74% and disclosed interest income is 1.03%, but liquidity is 36.67%, above the examined 33.333% FTSE asset limit. Business activity remains incomplete because the filing does not quantify a universal prohibited-revenue numerator.
- Financial
- Fails
- Overall
- Fails
Debt is 0.00%, while liquidity is 36.67% and receivables plus cash are 46.74%, both above the examined MSCI total-assets limits. This is a calculation against the named method, not an index-membership claim; the business allocation is also incomplete.
- Financial
- Fails
- Overall
- Fails
Debt is 0.00%, but liquidity is 36.67%, above the examined 33% Malaysia SAC financial limit. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security; screened business revenue remains unavailable.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
On Holding designs and distributes premium performance footwear, apparel and accessories. Athletic goods are generally permissible consumer products and no conventional lending, gambling, alcohol or tobacco segment is disclosed.
Limitation: The filing does not quantify every sponsorship, customer, retail, marketing or product-level activity into a universal prohibited-revenue numerator.
Purification
On Holding discloses CHF 30.9 million of interest income, or 1.03% of 2025 net sales, primarily from short-term investments, but does not prescribe a scholar-approved purification percentage or complete activity-level allocation. Readers should follow the scholar or methodology they use.
Inputs, assumptions and primary sources
- The audited balance sheet reports CHF 2,835.4 million of total assets at December 31, 2025. On reported no drawn amounts under its CHF 700 million credit facility; lease liabilities are not entered as conventional debt in this record.
- Cash uses CHF 1,019.9 million of cash and cash equivalents. The filing says this includes current bank accounts, digital wallets and fixed deposits with maturities of three months or less; those instruments are not added again as separate securities.
- Interest-bearing securities use CHF 19.9 million of deposits reported in other current financial assets. Credit-card receivables and other current financial assets are not assumed to be interest-bearing securities without a more specific disclosure.
- Receivables use CHF 305.4 million of trade receivables. Revenue uses CHF 3,014.0 million of 2025 net sales.
- The filing reports CHF 30.9 million of interest income, primarily from short-term investments. It is used for the income screen; foreign-exchange gains and other financial-result items are not treated as interest income.
- On Holding develops and sells performance footwear, apparel and accessories through wholesale and direct-to-consumer channels. The filing does not quantify every customer or marketing activity into a universal prohibited-revenue numerator.
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.
Current quantitative screen
The calculations above use On Holding's official filing (Form 20-F for the year ended December 31, 2025). Amounts are in CHF millions and use total assets as the denominator so the inputs can be reproduced.
- Interest-bearing debt / assets: 0.00%, using the company's statement that no amounts were drawn under its CHF 700 million credit facility; lease liabilities are shown separately rather than treated as conventional debt here.
- Cash and interest-bearing securities / assets: 36.67%, using CHF 1,019.9 million of cash and cash equivalents plus CHF 19.9 million of deposits in other current financial assets.
- Receivables plus cash / assets: 46.74%, using CHF 305.4 million of trade receivables plus cash and cash equivalents.
- Disclosed interest income / sales: 1.03%, using CHF 30.9 million of interest income against CHF 3,014.0 million of 2025 net sales.
FTSE Yasaar, MSCI total-assets and Malaysia SAC calculations all fail at least one financial ratio on these inputs. Market-cap denominator methods are not calculated because ZakatInvest does not store a licensed, reproducible historical market-cap series. The qualitative business assessment remains HALAL, but the combined result is shown as FAIL for the examined financial screens.
What On Holding does
On Holding develops and distributes premium performance products, led by its CloudTec running footwear. The 2025 annual report describes wholesale and direct-to-consumer channels, including the company's e-commerce site and owned retail stores, with expansion across running, training, tennis and outdoor categories.
Athletic footwear, apparel and accessories are neutral consumer goods. The official filing does not quantify every customer, athlete sponsorship, marketing image, product feature or end-use activity into a universal prohibited-revenue numerator, so a blanket “zero haram revenue” claim would not be supported.
Cash, deposits and lease liabilities
On reported CHF 1,019.9 million of cash and cash equivalents at December 31, 2025, including CHF 623.7 million of fixed deposits with maturities of three months or less. It also reported CHF 19.9 million of deposits in other current financial assets. Those instruments are identified explicitly in the screen because providers may classify deposits and money-market-like balances differently.
The balance sheet reports CHF 521.5 million of current and non-current lease liabilities. They are not entered as conventional interest-bearing debt in this record because the filing separately describes lease obligations and no drawn credit-facility balance. Investors following a methodology that treats some lease obligations as debt should recalculate the result.
Qualitative considerations
- Interest income: CHF 30.9 million was primarily earned on short-term investments, equal to 1.03% of 2025 net sales; no fixed purification percentage is prescribed here.
- Sponsorships and marketing: athlete partnerships and lifestyle marketing are commercially important but are not fully disaggregated for a universal activity screen.
- Operations: international retail expansion, product claims, labor conditions, materials, emissions, returns and supplier concentration require continuing diligence.
- Financing: an undrawn CHF 700 million credit facility, lease commitments and warehouse expansion can change future financial ratios.
The halal verdict
ONON is presented as HALAL on ZakatInvest's qualitative core-business assessment, with a FAIL result for the examined FTSE Yasaar, MSCI total-assets and Malaysia SAC financial screens because liquidity exceeds their total-assets limits. This is not an official index membership or fatwa: business activity is incomplete, market-cap methods are not calculated, and deposit and lease treatment can differ by methodology.
Use the quantitative screen alongside the cash, lease, sponsorship and supply-chain analysis and consult a qualified scholar for your chosen methodology.
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