The short answer
O'Reilly Automotive (ORLY) remains HALAL under ZakatInvest's qualitative core-business verdict, but its current total-assets financial screen fails on debt. The qualitative verdict is HALAL because O'Reilly primarily sells automotive aftermarket parts, maintenance items, tools and service equipment, which are generally permissible goods and retail commerce. The current filing also reports $6.195 billion of long-term debt, operating lease liabilities, trading securities and customer and product categories that make the older “moderate debt and every screen passes” summary inaccurate.
This is a reproducible research screen, not a fatwa or investment recommendation. Scholars can differ on debt thresholds, lease treatment, product categories, customer end use and the treatment of interest earned on cash investments.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
6,195.311 / 16,937.178
317.37 / 16,937.178
683.805 / 16,937.178
1.748 / 4,560.539
- Financial
- Fails
- Overall
- Fails
Debt is 36.58% and exceeds the examined FTSE 33.333% limit. Identifiable liquidity is 1.87%, receivables plus cash is 4.04%, and disclosed interest income is 0.04%; those measures are below the examined limits, but the financial screen fails on debt and business activity remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt is 36.58% and exceeds the examined MSCI total-assets limit; identifiable liquidity is 1.87% and receivables plus cash is 4.04%. This is a calculation against the named method, not an index-membership claim, and business allocation remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt is 36.58% and exceeds the examined 33% Malaysia SAC limit; identifiable liquidity is 1.87%. This is a calculation against SAC ratios, not an official SAC 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
O'Reilly Automotive is a specialty retailer of automotive aftermarket hard parts, maintenance items, accessories, auto-body materials, tools and service equipment for do-it-yourself and professional service-provider customers. Auto-parts retail and vehicle maintenance are generally permissible commerce, while product-level categories, customer end use and supplier practices require continuing qualitative review.
Limitation: The filing disaggregates sales between do-it-yourself customers and professional service providers but does not isolate revenue by product category, customer end use, chemical or fluid type, vehicle use or other potentially prohibited category into a universal activity numerator.
Purification
Disclosed interest income is $1.748 million, or 0.04% of quarterly sales, but the filing does not provide a universal allocation for product categories or customer end uses and no fixed purification percentage is prescribed here; readers should follow the scholar or methodology they use.
Inputs, assumptions and primary sources
- Debt uses the reported $6.195311 billion long-term debt balance, which includes senior notes, commercial paper and revolving-credit borrowings. Operating lease liabilities are not added to the conventional debt input, but remain a qualitative consideration.
- Cash uses the reported $252.632 million cash and cash equivalents balance. The filing separately reports $64.738 million of trading marketable securities held for future deferred-compensation obligations; that balance is included as interest-bearing securities without treating it as cash.
- Receivables use the reported $431.173 million net accounts receivable balance. Revenue uses $4.560539 billion of sales for the three months ended March 31, 2026.
- The filing reports $1.748 million of interest income for the quarter, or 0.04% of quarterly sales. This is a disclosed income line, not an estimate of every return earned on cash or marketable securities.
- O'Reilly reports automotive hard parts, maintenance items, accessories, auto-body paint and related materials, tools and professional service-provider equipment, but does not quantify a universal prohibited-revenue numerator by product, customer end use or contract. No zero-haram-revenue claim is entered.
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 O'Reilly's official filing (Form 10-Q for the quarter ended March 31, 2026). Amounts are in USD millions and use total assets as the denominator so the inputs can be reproduced from the filing.
- Interest-bearing debt / assets: 36.58%, using $6.195311 billion of reported long-term debt. Operating lease liabilities are excluded from this conventional debt input.
- Cash plus separately identified marketable securities / assets: 1.87%, using $252.632 million of cash and $64.738 million of trading securities held for deferred-compensation obligations.
- Receivables plus cash / assets: 4.04%, using $431.173 million of net accounts receivable and the reported cash balance.
- Interest income / sales: 0.04%, using $1.748 million of quarterly interest income against $4.560539 billion of sales.
The reproduced FTSE Yasaar calculation fails on debt, while liquidity, receivables-plus-cash and disclosed interest income are below the examined FTSE limits. MSCI's total-assets calculation fails on debt. Malaysia SAC fails on debt. Market-cap-denominator methods are not calculated because this site does not store a licensed, reproducible historical market-cap series.
What O'Reilly does now
O'Reilly is a specialty retailer serving do-it-yourself and professional service-provider customers. Its product line includes new and remanufactured hard parts, maintenance items, accessories, auto-body paint and related materials, automotive tools and professional service-provider equipment. In the first quarter of 2026, sales were $4.560539 billion, including $2.190132 billion to DIY customers and $2.290784 billion to professional service providers, with other sales and adjustments making up the balance.
The company also reported $2.347 billion of gross profit, or 51.5% of sales, and operated 6,644 stores across the United States, Puerto Rico, Mexico and Canada as of March 31, 2026. These issuer-reported operating facts describe the business; they do not establish a Sharia classification by themselves.
Qualitative considerations
- Core retail commerce: Selling replacement parts, tools and maintenance equipment is generally permissible commerce. The catalog includes fluids, chemicals, batteries, paint and other categories whose product-specific handling and end use still merit review.
- Customer end use: DIY and professional customer sales are disclosed, but the filing does not quantify customer industries, vehicle uses or outcomes. A broad customer split is not a universal prohibited-revenue numerator.
- Interest-bearing debt: O'Reilly reports senior notes, commercial paper and revolving-credit borrowings. The $6.195 billion balance is 36.58% of total assets and fails the examined total-assets debt limits.
- Leases and buybacks: Operating lease liabilities appear on the balance sheet, and the company continues to repurchase shares. These are relevant capital-structure questions even though leases are not entered as conventional debt here.
- Cash and securities: Cash equivalents and trading marketable securities held for deferred-compensation obligations are not silently treated as zero-interest assets. The filing separately discloses $1.748 million of interest income.
- Operations and suppliers: Product safety, warranties, hazardous-material handling, recycling, supplier labor, data security and cross-border trade remain continuing diligence questions.
What the financial evidence does—and does not—show
The filing supports a measured conclusion: O'Reilly has a generally permissible auto-parts retail core and very low identifiable liquidity relative to assets, but its debt ratio is above the examined asset-based limits. The 0.04% disclosed interest-income ratio does not override the debt result, and the filing does not prove that every product category, supplier practice or customer end use is permissible or prohibited.
Bottom line
O'Reilly Automotive is presented as HALAL on ZakatInvest's qualitative core-business assessment, with current FTSE, MSCI total-assets and Malaysia debt screens failing. Investors who use a method that treats debt, leases or product categories differently should review the inputs with a scholar. No fixed purification percentage is prescribed here.
Auto-parts retail is generally permissible, while debt, leases, interest income, product categories and customer end use require continuing review.
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