Is BBY (Best Buy Co., Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, BBY is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (30.95% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (12.05% vs ≤33% threshold).

Best Buy Co., Inc. is a leading specialty retailer of consumer electronics and appliances across the United States and Canada. The company is the go-to destination for everything from computing devices and mobile phones to smart home technology and major kitchen appliances like dishwashers. Beyond just selling hardware, they offer significant support services through their Geek Squad brand, providing installation and technical support that drives customer loyalty. For Muslim investors, Best Buy is considered Halal under AAOIFI standards, having passed all four financial screens. This designation means the company' s primary business activities are permissible and its financial ratios are within acceptable limits. Specifically, the company does not deal in har am goods, and its financial structure avoids excessive reliance on interest-bearing debt or income, making it a viable candidate for a shariah -compliant portfolio. From a financial perspective, Best Buy's debt levels are the metric to watch, currently sitting at 30.9% of its market capitalization. While this is a pass, it is close to the 33% upper limit set by shariah scholars, meaning investors should monitor the stock price volatility which could push this ratio into non-compliant territory. However, the company's interest income is virtually zero, which is excellent, and its cash holdings are a healthy 12.0%, indicating efficient capital deployment. Investors should continue to monitor the company's debt load relative to its market cap in future quarters. While currently compliant, a significant drop in share price or an increase in borrowing could threaten its status. For now, Best Buy represents a clean, compliant option in the consumer cyclical sector for those seeking exposure to the retail technology market. Best Buy Co., Inc. operates in the Consumer Cyclical sector under the Specialty Retail industry and is headquartered in Richfield, MN, US. The company is led by CEO Corie Sue Barry and employs approximately 85,000 people.

BBY was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. BBY passed 4 of these 4 screens.

BBY has negligible interest income, so purification may not be necessary. However, it is always advisable to consult a qualified scholar regarding your specific investment situation.

BBY was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.