Is ITW (Illinois Tool Works Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ITW 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 (11.70% vs ≤33% threshold), interest income ratio (0.00% vs ≤5% threshold), and cash & securities ratio (1.11% vs ≤33% threshold).

Illinois Tool Works Inc. (ITW) is a global manufacturer operating across diverse segments, including automotive OEM components, food processing equipment, and specialized polymers. The company provides essential hardware, testing equipment, and construction materials utilized across heavy industries and everyday commercial applications. For Muslim investors, ITW represents a solid Halal investment opportunity, having successfully passed all four AAOIFI screening criteria. The company's core operations in industrial machinery are inherently permissible, meaning investors do not have to worry about revenues derived from prohibited sectors like alcohol, gambling, or conventional finance. From an Islamic finance perspective, ITW boasts exceptionally clean financials, highlighted by a very low debt-to-market capitalization ratio of just 11.7%. Furthermore, the company's interest-bearing cash and securities sit at a mere 1.1% of its market cap, ensuring that interest income remains essentially non-existent at 0.00% of total revenue. Since there is no significant scholarly debate regarding the permissibility of industrial manufacturing, investors can confidently hold ITW. Moving forward, shareholders should simply monitor the company's debt levels during future acquisitions to ensure the debt-to-market cap ratio remains well below the 33% threshold. Illinois Tool Works Inc. operates in the Industrials sector under the Industrial - Machinery industry and is headquartered in Glenview, IL, US. The company is led by CEO Christopher A. O'Herlihy and employs approximately 44,000 people.

ITW 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. ITW passed 4 of these 4 screens.

ITW 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.

ITW 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.