Is F (Ford Motor Company) Halal or Haram?

Based on our AAOIFI-standard shariah screening, F is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. Its debt-to-market-cap ratio of 296.35% exceeds the ≤33% threshold. Its cash & securities ratio of 68.06% exceeds the ≤33% threshold.

Ford Motor Company is a global automotive giant known for manufacturing iconic vehicles ranging from the best-selling F-Series trucks to the electric Mustang Mach- E and luxury Lincoln SUVs. The company operates through distinct segments including Ford Blue for internal combustion engines, Ford Model e for electric vehicles, and Ford Pro for commercial customers. Beyond manufacturing, a significant portion of its operations involves financing and leasing through its Ford Credit arm, which supports dealerships and fleet customers worldwide. For Muslim investors using HalalStocks.co .uk, Ford presents a clear compliance issue despite its permissible business model. While the core activity of building cars is halal, the stock is currently classified as Not Halal (Haram) because it failed two critical financial ratios. Specifically, the company carries an excessive amount of interest-bearing debt relative to its market value, and its cash holdings are also above the acceptable threshold defined by AAOIFI standards. From a financial perspective, the primary concern is the Debt-to-Market Cap ratio , which sits at a staggering 296.3%, well above the 33% limit usually allowed for sh ariah-compliant equities. This high leverage is partly due to the capital-intensive nature of auto manufacturing and its financing arm, Ford Credit , which naturally carries heavy liabilities. Although interest income is low at just 0.80% of revenue, the sheer volume of debt makes this stock ineligible for Islamic portfolios at this time. Investors should note that automotive companies with large financing arms often struggle to pass shariah debt screens. Unless Ford significantly restructures its balance sheet or spins off its credit division, it is unlikely to meet compliance standards soon. Muslim investors looking for exposure to the EV or automotive sector should look for manufacturers with cleaner balance sheets and less reliance on debt financing. Ford Motor Company operates in the Consumer Cyclical sector under the Auto - Manufacturers industry and is headquartered in Dearborn, MI, US. The company is led by CEO James Duncan Farley Jr. and employs approximately 170,000 people.

F 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. F passed 2 of these 4 screens.

F 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.