Why can a Shariah-compliant company still have some debt or interest income?
Because listed-company screening uses tolerance thresholds, not a zero test - almost no listed company in the world would pass a zero test.
A screening standard applies financial ratios to a company's debt, its interest-bearing cash and its non-permissible income, and excludes anything above the threshold. Incidental interest income that survives the screen is then purified - the impure portion is calculated and given away.
Standards differ on the thresholds and on the denominator used to calculate them (market capitalisation versus total assets), so the same company can pass one standard and fail another. Every InvestHAQ fund profile names the standard that fund actually follows.
No single threshold is universally binding, and InvestHAQ does not present one as though it were.
Factual and educational information only. Nothing on this page is financial product advice, a recommendation, or a Shariah ruling. Consider your circumstances and the product's disclosure documents, and seek licensed advice and qualified scholarly guidance before acting.
