Is NKE (NIKE, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, NKE 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 (11.76% vs ≤33% threshold), interest income ratio (0.87% vs ≤5% threshold), and cash & securities ratio (9.77% vs ≤33% threshold).

NIKE, Inc. is the world's leading designer and marketer of authentic athletic footwear, apparel, equipment, and accessories for a wide variety of sports and fitness activities. The company operates through iconic subsidiaries, most notably the Jordan Brand (Jumpman) and Converse, selling everything from Chuck Taylor sneakers to high -performance running gear and digital fitness devices. Its dominance in the 'Apparel - Footwear & Accessories' sector makes it a staple blue-chip stock for many portfolios. For Muslim investors using HalalStocks.co.uk, Nike represents a clear 'Halal' investment opportunity based on current AAOIFI standards. The company passed all four screening metrics , confirming that its primary business activities are lawful and its financial ratios fall within acceptable Islamic limits. This means investors can confidently include N KE in their portfolios without the need for complex purification calculations often required for borderline stocks. Financially, Nike demonstrates strong discipline relevant to shariah compliance, particularly regarding leverage. With a debt-to-market cap ratio of only 1 1.8%, the company is well below the 33% limit, suggesting it is not overly reliant on interest-bearing loans to fund its operations. Additionally, its cash and interest-bearing securities make up just 9.8% of its market cap , further solidifying its compliant status. While Nike is currently fully compliant, investors should always monitor quarterly reports for changes in financial structure. Specifically, as interest rates fluctuate, companies with large cash reserves can sometimes see their interest income creep up, though Nike's current 0.87% interest income level provides a very comfortable buffer against the 5% limit . NIKE, Inc. operates in the Consumer Cyclical sector under the Apparel - Footwear & Accessories industry and is headquartered in Beaverton, OR, US. The company is led by CEO Elliott J. Hill and employs approximately 79,400 people.

NKE 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. NKE passed 4 of these 4 screens.

Although NKE passes all shariah screens, it does earn $404.0M in interest income (0.87% 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 $0.87 to purify the income.

NKE 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.