JACK
Quality Rating
Jack in the Box Inc. (JACK) operates quick-service restaurants offering burgers, tacos, and other fast food. While primary business activities are Shariah-compliant, severe financial issues including a debt-to-market-cap ratio of 680.99% and interest income ratio of 5.78% result in non-compliance across all major Shariah standards and indices. The company is excluded from S&P, MSCI, FTSE, and DJIM Islamic indices due to riba exposure. Purification of 5.78% is required for dividends, but overall investment is not recommended without significant deleveraging. Investors in its sector should consider compliant alternatives with stronger balance sheets.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Excluded from all major Shariah indices (S&P, MSCI, FTSE, DJIM)
Key Compliance Considerations
- Excessive debt ratio of 680.99% exceeding all thresholds (AAOIFI: 33%, MSCI: 33.33%, S&P: 33%)
- Interest income ratio of 5.78% surpassing 5% de minimis allowance across standards
Debt Ratio
681.0%
Liquidity Ratio
16.1%
Interest Income Ratio
5.8%
Purification
5.78%