The Short Answer
RBC Bearings (RBC) is qualitatively HALAL, but the current quantitative result is incomplete. The March 28, 2026 filing shows the known asset-based ratios pass; gross interest income and a universal prohibited-activity numerator are not separately disclosed.
Precision-bearing and engineered-component manufacturing is generally permissible at the activity level. Debt/assets is 19.35%, liquidity/assets is 1.12%, and receivables-plus-cash/assets is 7.77%; aerospace-and-defense end use remains a qualitative consideration.
Current quantitative Sharia screen
Based on 10-K figures for the period ended 2026-03-28; calculated 2026-07-15.
991.4 / 5,122.7
57.3 / 5,122.7
397.9 / 5,122.7
- Financial
- Incomplete
- Overall
- Incomplete
Debt/assets is 19.35%, liquidity/assets is 1.12% and receivables-plus-cash/assets is 7.77%; gross interest income is not separately disclosed.
- Financial
- Pass
- Overall
- Incomplete
Known asset-based ratios are below the examined limits, but gross interest income and prohibited-activity allocation are unavailable.
- Financial
- Pass
- Overall
- Incomplete
Known financial ratios pass the examined limits; this is not an official classification and the activity/income inputs remain incomplete.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored; the total-assets ratios are shown separately.
Business-activity disclosure
RBC Bearings manufactures precision bearings and engineered components for industrial, aerospace and defense customers. The core manufacturing activity is generally permissible, while defense end-use and customer allocation remain qualitative.
Limitation: The filing does not provide a universal prohibited-revenue numerator, and gross interest income is not separately disclosed.
Purification
Gross interest income is not separately disclosed and no scholar-specific purification instruction or universal prohibited-revenue numerator is provided.
Inputs, assumptions and primary sources
- Amounts are USD millions from RBC Bearings' March 28, 2026 Form 10-K.
- Debt combines $875.5 million of total debt and $115.9 million of current and noncurrent lease liabilities.
- Cash is $57.3 million and accounts receivable is $340.6 million.
- Revenue is $1,870.9 million. Gross interest income is not separately disclosed; the filing discusses interest expense net of interest income, so no income numerator is invented.
- Precision bearings and engineered components are generally permissible, while aerospace and defense end-use exposure remains qualitative and no universal prohibited-revenue numerator is asserted.
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)
RBC's Business Activity
RBC Bearings operates through two reporting segments:
- Aerospace/Defense: Precision-bearings, collets, and aerospace-fasteners
- Industrial: Roller-bearings, plain-bearings, ball-bearings, mounted-bearings, and precision-mechatronics-and-engineered-components (this segment was significantly expanded by the Dodge acquisition)
These are general-purpose industrial-components businesses — RBC manufactures and sells physical engineered parts. This is permissible at the activity level.
Concerns to Be Aware Of
1. Leverage Profile (Primary Consideration)
RBC reports $991.4 million of debt and leases against $5,122.7 million of assets (19.35%). The known asset-based ratio passes, while a licensed market-cap denominator is not stored.
2. Aerospace and Defense Exposure
A portion of revenue comes from aerospace-and-defense end-markets. Under standard methodology, precision-bearings are general-purpose industrial components rather than direct weapons-platform revenue, but investors who apply a stricter defense screen should review the segment mix.
3. Minor Interest Income
Gross interest income is not separately disclosed in the latest Form 10-K, so no income ratio or purification percentage is invented.
Filing-Based Ratios (March 28, 2026)
Based on RBC's latest Form 10-K:
- Debt / assets: 19.35%, below the examined limit.
- Cash + interest-bearing securities / assets: 1.12%, below the examined limit.
- Receivables + cash / assets: 7.77%, below the examined limit.
- Gross interest income: Not separately disclosed.
- Prohibited-activity revenue: Not disclosed; activity result is incomplete.
Methodology Interpretation
The known asset-based ratios pass the examined limits under the displayed methodologies, but gross interest income and prohibited-activity allocation are incomplete. The overall result is therefore incomplete, not a universal fatwa.
Bottom Line
RBC Bearings (RBC) has a generally permissible core business and passes the known current asset-based ratios, but the overall screen is incomplete because gross interest income and prohibited-activity revenue are not fully disclosed.
For Muslim investors seeking industrial-components exposure, RBC sits alongside other halal-screened names like Applied Industrial Technologies (AIT) and Dover (DOV).
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