The Short Answer
WESCO International (WCC) is qualitatively HALAL, but its current quantitative result fails. The March 31, 2026 filing shows debt/assets of 38.74%, above the examined asset-based limit.
Electrical-, communications-, and utility-products distribution is generally permissible at the activity level. The current screen shows liquidity/assets of 4.11% and receivables-plus-cash/assets of 32.12%, but debt/assets fails and gross interest income is not separately disclosed.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
6,571.4 / 16,964.7
696.6 / 16,964.7
5,448.6 / 16,964.7
- Financial
- Fails
- Overall
- Fails
Debt/assets is 38.74%, above the examined 33.333% limit; liquidity/assets is 4.11% and receivables-plus-cash/assets is 32.12%, while gross interest income is unavailable.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 38.74%, above the examined MSCI limit; gross interest income and prohibited-activity allocation remain unavailable.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 38.74%, above the examined Malaysia limit. This is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the total-assets debt screen already fails.
Business-activity disclosure
WESCO distributes electrical, communications, utility and supply-chain products. Distribution is generally permissible, while customer and downstream end-use allocation remains 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 WESCO International's March 31, 2026 Form 10-Q.
- Debt combines $5,821.7 million of current and long-term debt with $749.7 million of operating lease liabilities.
- Cash is $696.6 million; receivables combine $4,273.1 million trade and $478.9 million other receivables.
- Sales are $6,080.1 million. The filing reports net interest expense rather than a separately identifiable gross interest-income numerator, so no income input is invented.
- Electrical, communications and utility product distribution is generally permissible, while customer/end-use allocation 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)
WESCO's Business Activity
WESCO operates through three reporting segments:
- Electrical & Electronic Solutions: Electrical-equipment, wire-and-cable, lighting, and industrial-automation products
- Communications & Security Solutions: Network-infrastructure, security, and audio-visual products
- Utility & Broadband Solutions: Utility-distribution-and-transmission products and broadband-network products
These are general-purpose wholesale-and-distribution businesses — WESCO sells and distributes physical products and earns distribution margin and supply-chain-services revenue. This is permissible at the activity level.
Concerns to Be Aware Of
1. Leverage Profile (Primary Consideration)
WESCO reports $6,571.4 million of debt and leases against $16,964.7 million of assets (38.74%), above the examined 33.333% limit. Anixter-related leverage and leases require continuing review.
2. Receivables Ratio
Trade and other receivables total $4,752.0 million. Receivables-plus-cash/assets is 32.12% in the displayed calculation, while methodology definitions can differ for distribution businesses.
3. Preferred Stock
WESCO has a tranche of preferred stock outstanding from the Anixter transaction. Investors who screen for preferred-equity structures should review the capital structure at the time of investment.
Filing-Based Ratios (March 31, 2026)
Based on WESCO's latest Form 10-Q:
- Debt / assets: 38.74%, above the examined 33.333% limit.
- Cash + interest-bearing securities / assets: 4.11%, below the examined limit.
- Receivables + cash / assets: 32.12%, below the examined limit.
- Gross interest income: Not separately disclosed.
- Prohibited-activity revenue: Not disclosed; activity result is incomplete.
Methodology Interpretation
The current debt/assets ratio fails the examined asset-based limits. Gross interest income and prohibited-activity allocation are also incomplete, so the displayed overall result is fail and is not an official classification.
Bottom Line
WESCO International (WCC) has a generally permissible core business, but its current filing-based screen is not passing because debt/assets is 38.74%. Gross interest income and prohibited-activity revenue are not fully disclosed.
For Muslim investors seeking industrial-distribution exposure, WCC sits alongside other halal-screened names like Genuine Parts (GPC) and Applied Industrial Technologies (AIT).
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