Is MRK (Merck & Co., Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, MRK 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 (18.44% vs ≤33% threshold), interest income ratio (1.56% vs ≤5% threshold), and cash & securities ratio (5.32% vs ≤33% threshold).

Merck & Co., Inc. is a global healthcare leader operating across human pharmaceuticals and animal health. The company is renowned for its life-saving innovations in oncology, immunology, and virology, as well as its extensive portfolio of pediatric and adult vaccines. For Muslim investors, Merck represents a fully Halal investment opportunity, having passed all four AAOIFI screening criteria. Because its core business of drug manufacturing is permissible and its financial ratios remain within acceptable limits, investors can confidently hold this stock in their halal portfolios. From an Islamic finance perspective, Merck's balance sheet is highly compliant. The company's debt-to-market cap sits comfortably at 18.4%, and its cash and interest-bearing securities account for only 5.3% of its market capitalization, showing minimal reliance on interest-based leveraging. While the stock is currently compliant, Muslim investors should continue to monitor its interest income, which currently stands at a safe 1.56% of revenue. Any significant shifts in cash management or corporate acquisitions could impact these financial ratios in future quarters. Merck & Co., Inc. operates in the Healthcare sector under the Drug Manufacturers - General industry and is headquartered in Rahway, NJ, US. The company is led by CEO Robert Davis and employs approximately 73,000 people.

MRK 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. MRK passed 4 of these 4 screens.

Although MRK passes all shariah screens, it does earn $1.01B in interest income (1.56% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $1.56 to purify the income.

MRK 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.