The Short Answer
Tandem Diabetes stock (TNDM) is doubtful on the current quantitative screen. Tandem Diabetes Care designs and sells insulin-delivery systems — including its t:slim X2 and Mobi automated insulin pumps and related software — that help people with diabetes manage their condition. The business activity is permissible, but the latest filing shows convertible debt above the displayed asset-based limit.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
601.768 / 1,153.394
570.256 / 1,153.394
319.997 / 1,153.394
- Financial
- Fails
- Overall
- Fails
Debt/assets is 52.17% and liquidity/assets is 49.44%, above the examined 33.333% limits; receivables plus cash/assets is 27.74%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 52.17% and liquidity/assets is 49.44%, above the examined MSCI 33.33% limits; receivables plus cash/assets is 27.74%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 52.17% and liquidity/assets is 49.44%, above the examined Malaysia SAC limits; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset-based screens fail on debt and liquidity.
Business-activity disclosure
Tandem designs and sells insulin pumps, diabetes-management systems and related software. Healthcare devices are generally permissible, while product, customer and end-use disclosure remains methodology-dependent.
Limitation: The filing does not allocate every product, customer or end use into a universal prohibited-activity numerator, and gross interest income is unavailable.
Purification
Gross interest income is unavailable and no purification amount is inferred from net investment-income amortization.
Inputs, assumptions and primary sources
- Amounts are USD millions from Tandem Diabetes Care's March 31, 2026 Form 10-Q.
- Debt is $601.768 million of noncurrent convertible debt; operating leases are excluded.
- Cash and cash equivalents are $179.325 million. Short-term available-for-sale investments are $390.931 million and are included as identifiable interest-bearing securities.
- Accounts receivable, net is $140.672 million and first-quarter revenue is $247.221 million.
- Gross interest income is not separately disclosed; net investment-income amortization is not substituted, and the filing does not provide 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.
The March 31, 2026 Form 10-Q reports $601.768 million of convertible debt against $1,153.394 million of assets. That 52.17% debt/assets result fails the displayed 33.333% limit; gross interest income is not separately disclosed, so no invented purification percentage is used.
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 Tandem Diabetes Does
Tandem Diabetes Care, Inc. (headquartered in San Diego, California) makes diabetes-management technology:
- Insulin pumps: The t:slim X2 and Mobi automated insulin-delivery systems.
- Software and algorithms: Automated insulin-dosing technology integrated with continuous glucose monitors.
- Supplies: Recurring cartridges and infusion sets.
Selling medical devices that treat a chronic illness is a permissible activity, so the business-activity screen passes.
Why It Passes (and What to Check)
1. Permissible Core Business
Tandem's revenue comes from insulin-delivery devices and supplies that help people manage diabetes — a clearly permissible activity that benefits human health. There is no haram revenue line.
2. Debt Ratio (Deciding Screen)
Tandem has historically funded growth with convertible senior notes, so confirm the total-debt-to-market-cap ratio against the 33% threshold using the latest filings. This is the deciding screen for the verdict.
3. Interest Income (Purify)
Tandem earns interest income on its cash and investment balances. This should be checked against the 5% threshold and the corresponding portion of returns purified.
Current Quantitative Screen (March 31, 2026)
- Debt / assets: 52.17% — $601.768 million / $1,153.394 million (fails 33.333%)
- Cash + interest-bearing securities / assets: 49.44% — $570.256 million / $1,153.394 million (fails 33.333%)
- Receivables + cash / assets: 27.74% — $319.997 million / $1,153.394 million
- Interest income: Gross amount unavailable in the examined filing
The quantitative result is DOUBTFUL because debt and liquidity both exceed the displayed asset-based limits. Market-cap denominators and a complete prohibited-activity review can differ by school, so seek qualified advice before investing.
What About Purification?
Purify the portion of returns attributable to interest income earned on Tandem's cash and investment balances — donating that share of gains to charity.
How to Read the Result
The insulin-pump business is qualitatively permissible, but the current financial screen is DOUBTFUL. This is ZakatInvest's reproducible filing-based analysis, not an official outside-agency classification.
Bottom Line
Tandem Diabetes (TNDM) is doubtful on the current examined screen. The insulin-pump business is permissible, but debt/assets is 52.17% and liquidity/assets is 49.44% under the displayed asset-based tests. Re-screen after the next filing and consult a qualified adviser for a school-specific market-cap methodology.
Want to check if another stock is halal? Use our free screener.
Open Halal Checker →