SILO
Quality Rating
Silo Pharma, Inc. (SILO), a developmental-stage biopharmaceutical company focused on novel therapeutics, undergoes Shariah compliance screening revealing significant challenges in financial ratios, particularly liquidity and interest income exceeding thresholds across AAOIFI, MSCI, and S&P standards. While the core business in biotech R&D appears permissible with no non-compliant activities identified, high interest-bearing liquidity and disproportionate interest income from other net items lead to non-compliance determinations. Index inclusion research confirms exclusion from all major Shariah indices due to these quantitative failures. ESG factors show low risk with clean governance and no controversies, aligning well with Islamic principles. Overall, investors should monitor for financial improvements or consult scholars for potential purification, though current status warrants caution.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Not included in any of the four major Shariah-compliant indices: S&P Dow Jones, MSCI Islamic, FTSE Shariah, or DJIM.
Key Compliance Considerations
- Liquidity ratio of 128.18% exceeds 30-33% thresholds across standards, indicating excessive interest-bearing assets
- Interest income ratio of 433.85% far surpasses 5% limit, suggesting significant riba exposure
- Exclusion from all major Shariah indices reinforces quantitative non-compliance
Debt Ratio
0.0%
Liquidity Ratio
128.2%
Interest Income Ratio
433.9%
Purification
0.00%