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A pass or fail tells you nothing. The ratios tell you everything.

Screening looks at what a company does and how it is financed. Once you can read those two things, the verdict makes sense.

For: Investors who want to understand a compliance verdict, not just accept it

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Why this keeps happening

Verdicts with no reasoning

A green tick you cannot interrogate is not information you can act on.

Screeners disagreeing

Different standards use different debt thresholds and denominators.

Stale data

Ratios move with market capitalisation, so a verdict from last quarter may no longer hold.

How to fix it

  1. 1

    Check the business activity first

    Core revenue from non-compliant sectors ends the analysis immediately.

  2. 2

    Read the debt ratio

    Interest-bearing debt against market capitalisation, under the threshold your standard sets.

  3. 3

    Check non-compliant income

    Small incidental income is usually tolerated up to a limit, with purification.

  4. 4

    Note which standard was applied

    A verdict is only meaningful alongside the standard behind it.

How our approach compares

CapabilityShariahSignalTypical alternatives
Shows the underlying ratiosAlwaysRarely
Names the standard usedYesOften unstated
Purification estimateIndicative figureNot provided

Frequently asked

Why do two screeners disagree on the same stock?

They apply different standards — chiefly different debt thresholds and different denominators. Neither is a mistake.

Is this financial or religious advice?

No. It is an information tool. For rulings specific to your circumstances, consult a qualified scholar or advisor.

Why do two screening apps disagree about the same company?

Because they apply different standards. Some measure debt against market capitalisation, others against total assets; some use a 33 percent threshold, others 30 percent; and the treatment of cash and receivables varies. Neither result is a mistake — they are answering slightly different questions. That is why seeing the ratio, the threshold and the standard used matters more than seeing a green or red badge.

What counts as impermissible income?

Typically interest earned on deposits and conventional bonds, plus revenue from excluded business lines such as alcohol, gambling, tobacco, adult content and conventional insurance or lending. Most standards tolerate a small share — commonly up to five percent of total revenue — on the basis that it is incidental rather than the purpose of the business, and require the corresponding portion of your income to be purified.

How does purification actually work?

You calculate the impermissible share of the company revenue, apply that percentage to the dividends you received, and give that amount away without expecting reward for it. The app gives an indicative figure so you have a starting number. Because the underlying ratios change with each set of results, recalculate at least once a year rather than reusing an old percentage.

Can a compliant company become non-compliant?

Yes, and it happens quietly. A company that raises conventional debt, or whose market capitalisation falls sharply while its debt stays flat, can cross a threshold between reporting periods with no announcement. That is what watchlist alerts are for. It is also why a screen should be treated as a point-in-time reading rather than a permanent label.

Is this financial or religious advice?

No. It is an information tool that shows you the numbers and the standard behind them. Investment decisions carry risk and remain yours, and for a binding ruling on a specific holding you should take the figures to a scholar you trust.