Is PH (Parker-Hannifin Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, PH 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 (8.08% vs ≤33% threshold), interest income ratio (0.06% vs ≤5% threshold), and cash & securities ratio (0.39% vs ≤33% threshold).

Parker-Hannifin Corporation is a global leader in manufacturing motion and control technologies for industrial and aerospace markets. The company produces essential components like sealing systems, diagnostic filters, and fluid connectors that keep heavy machinery, mobile equipment, and aircraft operating safely. For Muslim investors, Parker-Hannifin represents a compelling Halal investment opportunity, having cleanly passed all four AAOIFI screening criteria. Because its core industrial operations involve no impermissible activities, everyday investors can comfortably hold this stock knowing its primary business model aligns with Islamic principles. From an Islamic finance perspective, PH boasts an incredibly clean balance sheet that easily clears our thresholds. Its debt-to-market cap ratio is just 8.1%, meaning the company avoids excessive interest-bearing leverage. Furthermore, interest income accounts for a mere 0.06% of total revenue, which means dividend purification requirements will be virtually non-existent for shareholders. While the stock is currently fully compliant, halal investors should continue to monitor its Aerospace Systems segment over time. Although currently permissible, any massive future shifts toward purely offensive military contracts could warrant a closer look, but its current diversified industrial focus remains perfectly sound. Parker-Hannifin Corporation operates in the Industrials sector under the Industrial - Machinery industry and is headquartered in Cleveland, OH, US. The company is led by CEO Jennifer A. Parmentier and employs approximately 61,120 people.

PH 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. PH passed 4 of these 4 screens.

Although PH passes all shariah screens, it does earn $11.0M in interest income (0.06% 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 $0.06 to purify the income.

PH 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.