LICN
Quality Rating
Lichen International Limited (LICN), a provider of financial and taxation solutions, educational support, and software services, is classified as non-compliant with Shariah standards primarily due to a high non-compliant income ratio of 30.1% from interest-bearing activities, exceeding the 5% threshold across major screening methodologies. While debt (0.41%) and liquidity (25.75%) ratios are favorable, the core financial services business raises concerns over riba involvement. The company is excluded from all major Shariah indices, confirming non-compliance. Purification of 30.1% is required for any impure income, and investors should monitor for shifts toward Islamic-compliant models. Overall, LICN presents moderate financial strength but significant Shariah risks in its revenue streams.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Excluded from S&P Dow Jones Shariah Indices, MSCI Islamic Indices, FTSE Shariah Indices, and Dow Jones Islamic Market (DJIM)
Key Compliance Considerations
- High non-compliant income ratio of 30.1% exceeding 5% thresholds across AAOIFI, MSCI, and S&P standards
- Potential riba exposure in core financial and taxation solutions business activities
Debt Ratio
0.0%
Liquidity Ratio
25.8%
Interest Income Ratio
30.1%
Purification
30.10%