Is CAH (Cardinal Health, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, CAH 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 (19.57% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (8.11% vs ≤33% threshold).

Cardinal Health, Inc. operates as a crucial link in the global healthcare supply chain, distributing branded and generic pharmaceuticals, medical supplies, and over-the-counter products. The company provides customized logistics and distribution solutions to hospitals, retail pharmacies, and clinical laboratories across the United States and internationally. For Muslim investors, Cardinal Health represents a strong Halal investment opportunity within the defensive healthcare sector. The stock successfully passes all four AAOIFI Shariah screens, meaning its life-saving core business activities are permissible and its financial structure aligns with strict Islamic principles. From an Islamic finance perspective, the company's balance sheet is highly compliant. Cardinal Health carries a conservative debt-to-market cap ratio of 19.6% and holds minimal cash and securities relative to its market cap at just 8.1%, ensuring investors are not overly exposed to interest-bearing instruments or excessive leverage. Since pharmaceutical distribution is universally accepted as a permissible activity, there is no significant scholarly debate regarding its core operations. However, halal investors should periodically monitor its debt levels to ensure they remain below the 33% AAOIFI threshold, especially during periods of market volatility. Cardinal Health, Inc. operates in the Healthcare sector under the Medical - Distribution industry and is headquartered in Dublin, OH, US. The company is led by CEO Jason Hollar and employs approximately 57,700 people.

CAH 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. CAH passed 4 of these 4 screens.

CAH 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.

CAH was last screened on 2026-04-29. 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.