HLF
Quality Rating
Herbalife Nutrition Ltd. (HLF) operates in its industry, focusing on nutritional supplements through a direct selling model. The company fails key financial Shariah screens due to high debt (271.37% of market cap) and liquidity (37.24% of market cap) ratios, despite compliant income metrics. Business activities are generally permissible, with no significant non-compliant revenue. Overall, HLF is non-compliant based on index exclusions, requiring purification for any dividends received. Investors should monitor debt reduction efforts for potential future compliance.
Purification Required
Moderate purification required - consider carefully
Index Inclusion
Not included in S&P Dow Jones Shariah, MSCI Islamic, FTSE Shariah, or DJIM indices
Key Compliance Considerations
- Excessive debt ratio (271.37%) exceeding all thresholds
- Liquidity ratio (37.24%) slightly above thresholds
- MLM business model raises gharar concerns in some scholarly views
Debt Ratio
271.4%
Liquidity Ratio
37.2%
Interest Income Ratio
3.3%
Purification
3.30%