OLPX
Quality Rating
Olaplex Holdings, Inc. (OLPX) operates in the permissible hair care sector but faces Shariah non-compliance primarily due to elevated debt (72.35%) and marginal interest income (5.3%) exceeding key thresholds across major standards. The company's business activities in manufacturing and selling hair care products to salons and consumers are fully compliant, with no non-permissible revenue identified. However, financial screening reveals failures in debt, liquidity, and impure income ratios, leading to exclusion from all major Shariah indices. A purification rate of 5.3% is recommended for any dividends received. Overall, while the core model aligns with Islamic principles, investors should monitor ongoing deleveraging efforts for potential future compliance.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Excluded from all major Shariah indices: S&P Dow Jones, MSCI Islamic, FTSE Shariah, and DJIM.
Key Compliance Considerations
- Debt Ratio: 72.35% (exceeds 30-33% thresholds across standards)
- Liquidity Ratio: 64.75% (exceeds 30-33% thresholds)
- Interest Income Ratio: 5.3% (marginally exceeds 5% impure income limit)
Debt Ratio
0.0%
Liquidity Ratio
0.0%
Interest Income Ratio
0.0%
Purification
5.30%