The Short Answer
Under Armour stock (UAA) is generally considered halal by most Islamic scholars and Sharia screening criteria — the athletic apparel business is permissible, with the debt ratio as the primary consideration to verify.
Current quantitative Sharia screen
Based on 10-K figures for the period ended 2026-03-31; calculated 2026-07-15.
1,190.444 / 4,415.694
914.564 / 4,415.694
991.029 / 4,415.694
13.9 / 4,966.37
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 26.96%, liquidity/assets is 20.71%, receivables-plus-cash/assets is 22.44% and disclosed interest income is 0.28%; known ratios pass while activity remains qualitative.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets, liquidity/assets and receivables-plus-cash/assets are below the examined MSCI total-assets limits; this is not an index-membership claim.
- Financial
- Pass
- Overall
- Incomplete
Known debt and liquidity ratios are below the examined Malaysia limits; this is not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A licensed historical market-cap series is not stored.
Business-activity disclosure
Under Armour designs, develops and markets performance apparel, footwear and accessories. Consumer athletic products are generally permissible, but the filing does not reduce every product, endorsement, license, marketing practice or end use to a universal prohibited-revenue numerator.
Limitation: The filing does not classify every product, material, licensee, marketing practice or customer end use by a universal Sharia category; activity remains qualitative.
Purification
Under Armour discloses $13.9 million of investment interest income, but ZakatInvest does not prescribe a scholar-approved purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Under Armour's March 31, 2026 Form 10-K.
- Interest-bearing debt is current maturities of $599.835 million plus noncurrent debt of $590.609 million; operating lease liabilities are excluded.
- Cash and cash equivalents are $309.168 million. Restricted investments of $605.396 million are included as an interest-bearing-securities proxy because the filing presents them as investments held for collateral or other restricted purposes.
- Accounts receivable, net is $681.861 million and fiscal-year revenue is $4,966.370 million.
- The filing separately discloses $13.9 million of investment interest income; net interest expense is not used as an income numerator.
- Athletic apparel, footwear and accessories are generally permissible, while product materials, endorsements and end-use activity 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.
Designing and selling athletic apparel and footwear is a permissible activity, and Under Armour earns product revenue rather than interest. The main thing to check is the debt-to-market-cap ratio, which can run higher when the share price is depressed during the company's turnaround.
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)
Under Armour's Business Activity
Under Armour is a performance apparel and footwear brand. Its business includes:
- Apparel: Performance and athletic clothing for men, women, and youth
- Footwear: Running, training, and lifestyle shoes
- Accessories: Bags, headwear, and related products
Designing and selling athletic apparel and footwear is permissible at the activity level — it is an ordinary consumer-products business.
Concerns to Be Aware Of
1. Debt Ratio — The Primary Consideration
Under Armour carries interest-bearing senior notes and a revolving credit facility. Confirm the debt-to-market-cap ratio against the 33% threshold at the time of investment — the ratio can rise when the share price is depressed during the turnaround, so this warrants particular attention.
2. Conventional Debt Instruments
Senior notes and revolving credit are conventional, interest-bearing instruments. Investors who object to such financing should weigh this even where the debt ratio passes the 33% screen.
3. Interest Income on Cash
Under Armour holds cash balances that generate interest income. Verify the interest-income-to-revenue ratio against the 5% threshold and purify the corresponding portion of returns.
Filing-Based Ratios (March 31, 2026)
Based on Under Armour's latest Form 10-K, using total-assets denominators:
- Debt / Assets: 26.96% — below the examined 33% limits ✅
- Cash + restricted investments / Assets: 20.71% — below the examined 33% limits ✅
- Receivables + cash / Assets: 22.44% — below the examined 33.33% and 50% limits ✅
- Investment interest income / Revenue: 0.28% — below FTSE's 5% benchmark, with purification still scholar-dependent ✅
- Business Activity: Permissible consumer products ✅
Methodology Interpretation
Under Armour's known total-assets ratios pass the examined FTSE, MSCI and Malaysia financial tests. This is a reproducible ZakatInvest calculation, not a claim of current index membership or an agency verdict; market-cap screens still require a current licensed series.
- Qualitative activity: Athletic apparel, footwear and accessories are generally permissible.
- Quantitative caution: Restricted investments are included in the liquidity proxy; denominator treatment can differ by methodology.
- Purification: The filing discloses investment interest income, but no fixed percentage is prescribed here.
Bottom Line
Under Armour (UAA) has a qualitatively halal athletic-apparel business, and its known total-assets ratios pass the examined FTSE, MSCI and Malaysia financial tests. Market-cap methods still require a current licensed series, and any scholar-determined interest component should be purified.
For Muslim investors seeking athletic apparel exposure, Under Armour sits alongside other names worth screening like Nike (NKE), Skechers (SKX), and Lululemon (LULU).
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