XXII
Quality Rating
The Shariah compliance analysis for 22nd Century Group (XXII), a company in its industry, indicates non-compliance primarily due to its involvement in tobacco-related activities, which are considered impermissible under most Shariah standards. Financial ratios show strengths in debt and liquidity management but fail on interest income thresholds. The company is excluded from all major Shariah indices, reinforcing the non-compliant status. Purification is required for the interest income portion, estimated at 12.75%. Investors should consider alternatives in compliant sectors while monitoring any business model shifts away from tobacco.
Purification Required
Significant purification required - exercise caution
Index Inclusion
Excluded from all major Shariah indices (S&P, MSCI, FTSE, DJIM)
Key Compliance Considerations
- Core business involvement in tobacco products, classified as haram
- Interest income ratio of 12.75% exceeding 5% threshold
Debt Ratio
4.2%
Liquidity Ratio
0.0%
Interest Income Ratio
12.8%
Purification
12.75%