SIF
Quality Rating
SIF demonstrates non-compliance with Shariah standards primarily due to a critically high debt ratio of 88.21%, far exceeding all financial thresholds, despite compliant liquidity and income ratios. The company's involvement in defense-related activities through aerospace forging contributes additional compliance concerns, potentially requiring purification or avoidance. No inclusion in major Shariah indices reinforces the non-compliant status. Investors should monitor debt reduction efforts and consult scholars on defense sector permissibility. Overall, the stock is not recommended for Shariah-compliant portfolios without significant restructuring.
Purification Required
Moderate purification required - consider carefully
Index Inclusion
Not included in any major Shariah indices (S&P, MSCI, FTSE, DJIM)
Key Compliance Considerations
- Debt ratio: 88.21% exceeds all thresholds (AAOIFI 30%, MSCI/SP 33%)
- Defense-related revenue: Approximately 25% from military components, raising ethical concerns
Debt Ratio
88.2%
Liquidity Ratio
6.6%
Interest Income Ratio
1.1%
Purification
1.11%