FTCI
Quality Rating
FTC Solar, Inc. (FTCI) is engaged in the development and provision of solar tracker systems, software, and engineering services, a sector aligned with Shariah principles of environmental stewardship. However, the company's financial profile reveals significant non-compliance due to an elevated interest income ratio of 43.12%, surpassing the 5% threshold across all major screening standards. Debt and liquidity ratios remain compliant, and business activities are free from non-permissible elements. The stock is excluded from all major Shariah indices, leading to an overall non-compliant status. Investors should consider purification requirements and monitor future financial improvements for potential compliance.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Not included in any of the major Shariah-compliant indices: S&P Dow Jones, MSCI Islamic, FTSE Shariah, or Dow Jones Islamic Market.
Key Compliance Considerations
- Interest income ratio exceeds 5% threshold at 43.12%, indicating substantial riba exposure
- Potential for increased financing needs in capital-intensive solar projects
Debt Ratio
15.3%
Liquidity Ratio
8.1%
Interest Income Ratio
43.1%
Purification
43.12%