Is HTZ (Hertz Global Holdings, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, HTZ 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 1336.59% exceeds the ≤33% threshold. Its cash & securities ratio of 42.98% exceeds the ≤33% threshold.

Hertz Global Holdings is one of the world's most recognizable vehicle rental companies, operating the Hertz, Dollar, and Thrifty brands across thousands of locations globally. Beyond short-term rentals, the company engages in car sharing through Hertz 24/7 and generates significant revenue by selling its used fleet vehicles directly to consumers and dealers. Its operations span the Americas, Europe, and Asia, making it a dominant player in the travel and logistics sector. For Muslim investors, Hertz presents a critical issue: despite running a halal business operation, the stock is currently deemed Not Halal (H aram) under AAOIFI standards. While the core activity of renting cars is permissible, the company failed two out of three financial screens. Specifically, its debt levels are remarkably high compared to its market capitalization, which is a common characteristic of capital-intensive rental businesses but disqualifies it for shariah-compliant portfolios. From a financial perspective, the primary concern is the Debt -to-Market Cap ratio of 1336.6%, which is astronomically higher than the 3 3% threshold allowed by Islamic finance standards. Additionally, the company holds significant liquid assets, with a Cash & Securities ratio of 43.0%, also failing the 33% limit. Investors looking for exposure to the travel or automotive sectors must look elsewhere until Hertz significantly restructures its balance sheet. Hertz Global Holdings, Inc. operates in the Industrials sector under the Rental & Leasing Services industry and is headquartered in Estero, FL, US. The company is led by CEO Wayne Gilbert West and employs approximately 26,000 people.

HTZ 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. HTZ passed 2 of these 4 screens.

HTZ 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.