AMC
Quality Rating
AMC Entertainment Holdings, Inc. (AMC) faces significant Shariah compliance challenges primarily due to its exceptionally high debt-to-market capitalization ratio of 658.98% and interest income ratio of 99.97%, far exceeding standard thresholds across AAOIFI, MSCI, and S&P methodologies. The company's core business in movie theater exhibition is generally permissible under Shariah principles, with no major non-compliant revenue streams identified beyond interest-related income. However, financial leverage from pandemic-era borrowings and restructuring renders it non-compliant with quantitative screens. Index providers unanimously exclude AMC due to these metrics, despite a clean business activity profile. Investors requiring purification must deduct nearly all dividends, and alternatives in the entertainment sector should be considered for better alignment.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Not included in any major Shariah-compliant indices (S&P, MSCI, FTSE, DJIM)
Key Compliance Considerations
- Debt ratio: 658.98% exceeds all thresholds (AAOIFI 30%, MSCI/SP 33%)
- Interest income ratio: 99.97% exceeds 5% limit across standards
- Liquidity ratio borderline at 30.06%, failing AAOIFI's strict 30% cap
Debt Ratio
659.0%
Liquidity Ratio
30.1%
Interest Income Ratio
100.0%
Purification
99.97%