Is CMI (Cummins Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, CMI 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 (9.19% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (4.09% vs ≤33% threshold).

Cummins Inc. is a global leader in industrial machinery, specializing in the design, manufacturing, and distribution of diesel and natural gas engines. The company also develops electric and hybrid powertrains, serving a wide array of markets including heavy-duty trucking, mining, marine, defense, and agriculture. For Muslim investors, Cummins Inc. represents a solid Halal investment opportunity. The stock successfully passes all four AAOIFI shariah screens, meaning its core business operations and financial structures align completely with Islamic finance principles without any major red flags. From a financial perspective, Cummins boasts a highly compliant balance sheet with a low debt-to-market cap ratio of just 9.2%. Additionally, the company derives 0.00% of its revenue from interest income, ensuring investors are shielded from impermissible (haram) earnings while benefiting from a strong industrial footprint. Because there are no scholarly debates regarding the manufacturing of commercial engines and industrial components, the primary focus for Islamic investors is simply routine monitoring. Shareholders should periodically check future earnings reports to ensure the company's debt and cash levels remain safely below the 33% AAOIFI thresholds. Cummins Inc. operates in the Industrials sector under the Industrial - Machinery industry and is headquartered in Columbus, IN, US. The company is led by CEO Jennifer W. Rumsey and employs approximately 69,600 people.

CMI 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. CMI passed 4 of these 4 screens.

CMI 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.

CMI 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.