Is PCAR (PACCAR Inc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, PCAR 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 (0.00% vs ≤33% threshold), interest income ratio (0.91% vs ≤5% threshold), and cash & securities ratio (14.84% vs ≤33% threshold).

PACCAR Inc is a global leader in the design and manufacturing of light, medium, and heavy-duty commercial trucks. Operating under well-known nameplates like Kenworth, Peterbilt, and DAF, the company also distributes aftermarket parts for commercial vehicles worldwide. For Muslim investors, PCAR represents a solid Halal investment opportunity, having successfully passed all AAOIFI screening criteria. The company's core operations in industrial manufacturing are entirely permissible, avoiding prohibited sectors like alcohol, gambling, or conventional financial services. Financially, PACCAR stands out with an impressive 0.0% debt-to-market cap ratio, completely eliminating concerns regarding interest-bearing debt. Furthermore, its interest income is minimal at just 0.91% of total revenue, and its cash reserves of 14.8% are well within the 33% threshold. While the core truck and parts segments are clear-cut, investors should monitor PACCAR's Financial Services segment over time. It is important to ensure that any conventional financing activities within this division do not grow to exceed the 5% impermissible income threshold in the future. PACCAR Inc operates in the Industrials sector under the Agricultural - Machinery industry and is headquartered in Bellevue, WA, US. The company is led by CEO R. Preston Feight and employs approximately 30,100 people.

PCAR 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. PCAR passed 4 of these 4 screens.

Although PCAR passes all shariah screens, it does earn $257.9M in interest income (0.91% 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 $0.91 to purify the income.

PCAR 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.