The Short Answer
The Toro Company stock (TTC) is qualitatively halal, but quantitatively incomplete on this current screen. Toro is a designer, manufacturer, and marketer of professional-and-residential turf-maintenance, landscaping, and outdoor-power equipment.
Turf-maintenance, landscaping, irrigation, and outdoor-power-equipment manufacturing are unambiguously permissible at the activity level. The one nuance Muslim investors should review is Toro's dealer-financing joint-venture, alongside routine leverage and interest-income checks.
The May 1, 2026 Form 10-Q reports debt/assets of 30.67%, liquidity/assets of 4.87%, and receivables-plus-cash/assets of 20.37%. The known ratios pass the displayed asset-based tests, but gross interest income and a universal prohibited-revenue numerator are not separately disclosed.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-05-01; calculated 2026-07-15.
1,137 / 3,706.6
180.4 / 3,706.6
755.5 / 3,706.6
- Financial
- Incomplete
- Overall
- Incomplete
Debt/assets is 30.67%, liquidity/assets is 4.87% and receivables-plus-cash/assets is 20.37%; the known FTSE ratios pass, but gross interest income is unavailable.
- Financial
- Pass
- Overall
- Incomplete
Known asset-based ratios are below the examined MSCI limits; gross interest income and finance-affiliate activity remain incomplete.
- Financial
- Pass
- Overall
- Incomplete
Known debt and liquidity ratios pass the examined Malaysia limits; this is not an official classification and 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
Toro manufactures turf-maintenance, landscaping, irrigation, snow, construction and outdoor-power equipment. The core activity is generally permissible, while its Red Iron Acceptance financing joint venture and customer/end-use mix require qualitative review.
Limitation: The filing does not provide a universal prohibited-revenue numerator and combines interest income with other income, so no percentage is invented.
Purification
Toro's other income combines interest with other items; no scholar-specific purification instruction or universal prohibited-revenue numerator is provided.
Inputs, assumptions and primary sources
- Amounts are USD millions from Toro's May 1, 2026 Form 10-Q for the three months ended that date.
- Debt combines $1,016.8 million of long-term debt with $120.2 million of current and noncurrent operating-lease liabilities; current borrowings are nil.
- Cash is $180.4 million and receivables are $575.1 million.
- Quarterly net sales are $1,424.7 million. Other income, net combines foreign exchange, interest and other items, so no gross interest-income numerator is invented.
- Turf, irrigation, landscaping and outdoor-equipment manufacturing is generally permissible, while Red Iron Acceptance finance-affiliate exposure and customer/end-use allocation remain qualitative.
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)
Toro's Business Activity
Toro operates through reporting segments including:
- Professional: Turf-maintenance-equipment, golf-course-and-grounds equipment, landscape-contractor equipment, rental-and-specialty-construction equipment, and irrigation-and-lighting solutions
- Residential: Walk-power-mowers, riding-mowers, zero-turn-mowers, snow-throwers, and home-solutions products under brands including Toro, Exmark, Ditch Witch, and BOSS
These are general-purpose industrial-and-consumer-durable-equipment businesses — manufacturing and selling physical equipment. This is permissible at the activity level.
Concerns to Be Aware Of
1. Dealer-Financing Joint-Venture
Toro operates Red Iron Acceptance, a financing joint-venture that provides inventory-financing to dealers. Investors should verify that financing-related income and any consolidated financing assets remain within the relevant Sharia financial-screen thresholds at the time of investment.
2. Leverage Profile
Toro reports $1,137.0 million of debt and operating-lease liabilities against $3,706.6 million of assets (30.67%). The known asset-based ratio is below the examined limit; a market-cap denominator is not stored in this screen.
3. Minor Interest Income
The filing combines interest with foreign-exchange and other items in other income, net. No purification percentage is invented; investors should consult their chosen scholar or methodology if a later filing separately discloses the amount.
Filing-Based Ratios (May 1, 2026)
Based on Toro's latest Form 10-Q and consolidated financial statements:
- Debt / assets: 30.67%, below the examined 33.333% limit.
- Cash + interest-bearing securities / assets: 4.87%, below the examined liquidity limit.
- Receivables + cash / assets: 20.37%, below the examined asset-based limits.
- Gross interest income: Not separately disclosed; other income combines interest, foreign exchange and other items.
- Prohibited-activity revenue: Not separately disclosed; Red Iron Acceptance remains a qualitative diligence item.
Methodology Interpretation
The known asset-based ratios pass and the core equipment business is generally permissible, but the overall result is incomplete because gross interest income and a universal prohibited-revenue numerator are unavailable. This is not a claim about any external agency or a universal scholarly ruling.
Bottom Line
The Toro Company (TTC) is qualitatively halal but quantitatively incomplete on this current screen. The core business — turf-maintenance and outdoor power equipment — is unambiguously permissible at the activity level. The main diligence step is to verify the dealer-financing joint venture and obtain a separately disclosed gross-interest figure if available.
For Muslim investors seeking equipment-manufacturing exposure, TTC sits alongside other halal-screened names like Deere (DE) and AGCO (AGCO).
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