The Short Answer
Woodward stock (WWD) is halal on the known financial screen, with an activity-classification caveat. The March 31, 2026 filing shows debt/assets of 22.61%, liquidity/assets of 10.09% and receivables-plus-cash/assets of 28.83%, all below the examined financial limits.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
1,123.278 / 4,969.112
501.169 / 4,969.112
1,432.4 / 4,969.112
0.715 / 1,090.568
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 22.61%, liquidity is 10.09%, receivables plus cash is 28.83% and disclosed income/revenue is 0.07%, within examined FTSE limits; activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 22.61%, liquidity is 10.09% and receivables plus cash is 28.83%, below examined MSCI total-assets limits; activity remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt/assets is 22.61% and liquidity is 10.09%, below the examined 33% limits; activity remains incomplete and this is not an official classification.
- Financial
- Not calculated
- Overall
- Incomplete
A licensed historical market-cap series is not stored and activity classification remains incomplete.
Business-activity disclosure
Woodward designs control systems and components for aerospace, defense and industrial applications. Engineering and manufacturing are generally permissible, but defense contracts and end uses require continuing qualitative review.
Limitation: The filing does not provide a reproducible prohibited-revenue numerator for defense or other customer end uses.
Purification
The filing discloses $0.715 million of interest income (0.07% of quarterly revenue), but no scholar-approved fixed purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions converted from Woodward's thousands-of-dollars presentation for March 31, 2026.
- Debt combines $623.000 million short-term debt, $46.905 million current long-term debt and $453.373 million long-term debt; operating leases are excluded.
- Cash includes $501.169 million cash and cash equivalents, including $3.6 million restricted cash on a conservative basis; no interest-bearing securities are separately identified.
- Accounts receivable is $931.231 million, quarterly revenue is $1,090.568 million and disclosed interest income is $0.715 million.
- The known financial ratios pass the examined limits, but activity and purification remain incomplete.
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)
Woodward's Business Activity
Woodward, Inc. is a maker of control systems and components for the aerospace and industrial markets. Its activity is:
- Aerospace: Fuel systems, actuation, and motion-control for commercial and defense aircraft
- Industrial: Control systems for gas and steam turbines, engines, and compressors
- Energy transition: Controls for alternative fuels and power-generation equipment
Manufacturing engine and turbine control systems is a clearly permissible activity with no haram revenue line of its own.
Why WWD Is Halal
1. Permissible Core Business
Making control systems for aircraft and industrial engines is a halal manufacturing business. There is no gambling, conventional banking, alcohol, or other prohibited line at the heart of the business.
2. Debt Ratio Is the Main Screen
Woodward reports $1,123.278 million of interest-bearing debt against $4,969.112 million of assets, or 22.61%. That known debt proxy passes the examined FTSE Yasaar, MSCI and Malaysia limits.
3. Receivables and Interest to Check
The filing reports cash of $501.169 million and accounts receivable of $931.231 million, or 28.83% combined with cash/assets. Disclosed interest income is $0.715 million, or 0.07% of quarterly revenue; activity and purification remain incomplete.
Current Filing-Based Quantitative Screen
Based on Woodward's March 31, 2026 Form 10-Q:
- Debt / Assets: 22.61% — below the examined limits ✅
- Liquidity / Assets: 10.09% — below the examined limits ✅
- Receivables + Cash / Assets: 28.83% — below the examined limits ✅
- Disclosed interest income / revenue: 0.07%; purification remains scholar-dependent ⚠️
Methodology Interpretation
WWD is incomplete overall: the known financial ratios pass the examined FTSE Yasaar, MSCI and Malaysia proxies, but defense, aerospace and industrial end-use classification is not quantified.
- FTSE Yasaar asset screen — financial PASS
- MSCI total-assets proxy — financial PASS
- Malaysia SAC asset ratios — financial PASS
Bottom Line
Woodward (WWD) is halal on the known financial screen, with an incomplete overall classification. The control-systems manufacturing business is generally permissible and the current known ratios pass; defense and other customer end uses remain qualitative, and disclosed interest income is 0.07% of quarterly revenue.
For Muslim investors seeking aerospace-industrial exposure, compare WWD with peers like HEICO (HEI), Curtiss-Wright (CW), and Moog (MOG.A).
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