Is CL (Colgate-Palmolive Company) Halal or Haram?

Based on our AAOIFI-standard shariah screening, CL 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 (11.80% vs ≤33% threshold), interest income ratio (0.37% vs ≤5% threshold), and cash & securities ratio (1.90% vs ≤33% threshold).

Colgate-Palmolive Company is a global consumer defensive giant specializing in household and personal products. The company operates through two main segments, producing everyday essentials like Colgate toothpaste, hand soaps, skin health products, and household cleaners, alongside a dedicated Pet Nutrition division. For Muslim investors, CL represents a solid Halal investment opportunity, having successfully passed all four AAOIFI Shariah screens. Its core business of manufacturing hygiene and home care products is entirely permissible, meaning investors can confidently allocate funds to this stock without concerns over haram business activities. From an Islamic finance perspective, the company's financial structure is highly favorable. Colgate-Palmolive maintains a very conservative debt-to-market cap ratio of 11.8%, and its interest-bearing income is virtually non-existent at just 0.37% of total revenue, keeping it well within halal compliance thresholds. Since there is no significant scholarly debate regarding the permissibility of everyday hygiene products, the primary focus for Muslim investors should be monitoring the company's debt levels and cash reserves in future quarterly earnings to ensure they continue to remain below the 33% AAOIFI limits. Colgate-Palmolive Company operates in the Consumer Defensive sector under the Household & Personal Products industry and is headquartered in New York City, NY, US. The company is led by CEO Noel R. Wallace and employs approximately 34,000 people.

CL 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. CL passed 4 of these 4 screens.

Although CL passes all shariah screens, it does earn $75.0M in interest income (0.37% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.37 to purify the income.

CL 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.