The short answer
PACCAR (PCAR) remains DOUBTFUL under ZakatInvest's qualitative verdict, and its current total-assets financial screen fails. Kenworth, Peterbilt and DAF trucks and PACCAR Parts are generally permissible manufacturing and distribution businesses. PACCAR Financial Services is material, however: it provides customer loans, finance leases, dealer wholesale financing and operating leases, and reports interest and fees from those activities. The balance-sheet and income evidence therefore cannot be treated as a minor ancillary concern.
This is a reproducible research screen, not a fatwa or investment recommendation. Scholars can differ on finance-lease contracts, fee treatment, customer facilitation and which Financial Services balances belong in each calculation.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
14,945.6 / 43,553.5
8,858.3 / 43,553.5
27,243.5 / 43,553.5
344.9 / 6,776.5
- Financial
- Fails
- Overall
- Fails
Debt is 34.32% and receivables plus cash are 62.55%, both above the examined FTSE asset limits; identifiable liquidity is 20.34%. The conservative upper-bound interest-and-fees input is 5.09% of revenue and also exceeds the examined 5% limit.
- Financial
- Fails
- Overall
- Fails
Debt is 34.32% and receivables plus cash are 62.55%, exceeding the examined MSCI total-assets limits; identifiable liquidity is 20.34%. This is a calculation against the named method, not an index-membership claim, and the business allocation remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt is 34.32% and exceeds the examined 33% Malaysia SAC limit; identifiable liquidity is 20.34%. This is a calculation against SAC ratios, not an official SAC classification of a U.S.-listed security; contract-level activity remains unresolved.
- 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
PACCAR manufactures Kenworth, Peterbilt and DAF trucks and distributes aftermarket parts, which are generally permissible industrial and commercial activities. Its Financial Services segment provides customer loans, finance leases, dealer wholesale financing and operating leases, making the qualitative verdict DOUBTFUL for investors who treat conventional lending or interest-based finance as disqualifying.
Limitation: The filing separates Financial Services interest and fees from operating-lease, rental and other revenue, but it does not isolate every contract-level interest, fee, lease, insurance or customer-use component into a universal prohibited-revenue numerator.
Purification
The filing discloses $344.9 million of Financial Services interest and fees, or 5.09% of quarterly revenue, but that line includes fee components and the complete contract-level prohibited-revenue allocation is unavailable. No fixed purification percentage is prescribed; readers should follow the scholar or methodology they use.
Inputs, assumptions and primary sources
- Debt uses PACCAR Financial Services commercial paper and bank loans of $4.7561 billion plus term notes of $10.1895 billion. The filing reports no borrowings under the committed bank facilities; truck-segment operating liabilities are not treated as interest-bearing debt without a disclosed debt caption.
- Cash uses $5.3819 billion in Truck, Parts and Other plus $262.9 million in Financial Services. Marketable securities of $3.2135 billion are separately identified in Truck, Parts and Other and are added as interest-bearing securities.
- Receivables use $2.2569 billion of Truck, Parts and Other trade and other receivables plus $19.3418 billion of Financial Services finance and other receivables. The balance therefore includes the lending arm's financing portfolio rather than hiding it in a narrow trade-receivable figure.
- Revenue uses $6.7765 billion for the three months ended March 31, 2026: $4.5265 billion truck, $1.7101 billion parts, a $2.3 million intersegment elimination and $542.2 million Financial Services revenue.
- The $344.9 million Financial Services interest-and-fees line is used as a conservative upper bound for the income screen. It includes fee components and is not asserted to be pure gross interest income; operating-lease and other Financial Services revenue of $197.3 million is not added to this income input.
- PACCAR reports a $22.3482 billion Financial Services asset base, including loans, finance leases and operating leases. The filing does not provide a universal scholar-approved prohibited-revenue numerator for every lease, fee, insurance or customer contract.
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 PACCAR'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: 34.32%, using $4.7561 billion of Financial Services commercial paper and bank loans plus $10.1895 billion of term notes.
- Cash plus separately identified interest-bearing securities / assets: 20.34%, using $5.6448 billion of cash and $3.2135 billion of marketable securities.
- Receivables plus cash / assets: 62.55%, using $2.2569 billion of trade and other receivables, $19.3418 billion of Financial Services finance and other receivables and the reported cash balance.
- Financial Services interest and fees / revenue: 5.09%, using $344.9 million against $6.7765 billion of quarterly revenue. This is a conservative upper bound because the line includes fees as well as interest-related income.
Under the reproduced FTSE Yasaar calculation, debt, receivables-plus-cash and the conservative income input exceed the examined limits. MSCI's total-assets calculation also fails on debt and receivables-plus-cash. Malaysia SAC debt exceeds the examined 33% limit. Market-cap-denominator methods are not calculated because this site does not store a licensed, reproducible historical market-cap series.
What PACCAR does now
PACCAR's Q1 2026 filing reports $4.5265 billion of truck revenue, $1.7101 billion of Parts revenue and $542.2 million of Financial Services revenue, for consolidated net sales and revenues of $6.7765 billion. The truck brands are Kenworth, Peterbilt and DAF; PACCAR Parts distributes aftermarket components and related services.
Financial Services reported $344.9 million of interest and fees and $197.3 million of operating-lease, rental and other revenue. Its balance sheet includes $19.3418 billion of finance and other receivables and total Financial Services assets of $22.3482 billion. The filing describes loans collateralized by vehicles, finance leases, floating-rate dealer wholesale loans and operating leases, so the financing arm is economically significant.
Qualitative considerations
- Truck and parts manufacturing: manufacturing heavy-duty trucks, electric trucks, batteries and aftermarket parts is generally permissible industrial commerce and supports the halal core-business side of the analysis.
- Retail loans and finance leases: PACCAR says Financial Services provides loans and finance leases and recognizes interest income from finance and other receivables using the interest method. Investors who treat conventional interest-based lending as disqualifying will view this as a material problem.
- Dealer wholesale financing: floating-rate wholesale loans to PACCAR dealers are part of the Financial Services product set. This is more than a customer-payment convenience and requires contract-level Sharia review.
- Operating leases and residual-value guarantees: operating-lease rental revenue, full-service leases, truck buyback commitments and residual-value guarantees may be analyzed differently from loans. The filing does not justify collapsing every lease dollar into a universal prohibited-revenue percentage.
- Derivatives: PACCAR enters interest-rate, foreign-exchange and commodity contracts for hedging and states that its policies prohibit speculation or trading. Hedge accounting and the underlying interest-bearing debt still warrant methodology-specific review.
- Credit and industrial risk: finance-receivable delinquencies, provisions and charge-offs, used-truck residual values, emissions and safety regulation, tariffs, the Amplify Cell Technologies battery joint venture and cross-border lending remain material diligence questions.
What the financial evidence does—and does not—show
The filing supports a measured conclusion: truck and parts operations are substantial and generally permissible, but the Financial Services portfolio, debt and interest-and-fees line are also substantial. The 5.09% figure is not presented as a perfect gross-interest measure because the filing combines interest and fees; it is a transparent conservative upper bound. Conversely, the filing does not support claiming that all Financial Services revenue is prohibited or that a single purification percentage is universally authoritative.
Bottom line
PACCAR is presented as DOUBTFUL because its conventional-finance arm is material and the current debt and receivables screens fail. Investors who follow a more permissive view of ancillary financing may weigh the truck and parts business separately, but should still consult a scholar about loans, finance leases, dealer lending, interest-and-fee treatment and purification. No fixed purification percentage is prescribed here.
Manufacturing and parts are generally permissible, while loans, finance leases, dealer lending, leverage and receivables make the current verdict doubtful.
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