Is DE (Deere & Company) Halal or Haram?

Based on our AAOIFI-standard shariah screening, DE is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in DE.

Deere & Company is a global leader in manufacturing agricultural, construction, and forestry machinery. The company is best known for its iconic John Deere brand, producing mid-size tractors, combines, and precision agriculture equipment that support global food production and infrastructure development. For Muslim investors using AAOIFI standards, Deere & Company currently holds a Doubtful compliance status. While the company's core manufacturing operations easily pass the business activity screen, it fails the financial screening criteria due to excessive leverage. The primary concern from an Islamic finance perspective is Deere's Debt-to-Market Cap ratio, which stands at an elevated 42.3%, well above the 33% limit. Fortunately, its interest-bearing securities and cash ratio is very low at 6.4%, and its interest income falls within acceptable limits at 0.00%. Halal investors should also note that Deere operates a dedicated Financial Services segment to help customers finance equipment, which involves interest-based lending. Investors must monitor both the revenue share of this financing division and the company's overall debt load to determine future shariah compliance. Deere & Company operates in the Industrials sector under the Agricultural - Machinery industry and is headquartered in Moline, IL, US. The company is led by CEO John C. May and employs approximately 73,100 people.

DE 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. DE passed 3 of these 4 screens.

DE 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.