Is ROST (Ross Stores, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ROST 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 (7.16% vs ≤33% threshold), interest income ratio (0.88% vs ≤5% threshold), and cash & securities ratio (6.31% vs ≤33% threshold).

Ross Stores, Inc. is a major off-price retailer operating under the Ross Dress for Less and dd's DISCOUNTS brands. The company provides apparel, footwear, accessories, and home fashions at discounted prices to middle and moderate-income households across its nearly 2,000 store locations. For Muslim investors, ROST currently stands as a Halal investment option, having successfully passed all four AAOIFI screening criteria. Its core business of retail apparel is fundamentally permissible, and it operates without relying on prohibited activities like alcohol, gambling, or conventional financial services. From an Islamic finance perspective, Ross Stores boasts exceptional financial health with a low Debt to Market Cap ratio of just 7.2%. The company's cash reserves and interest income are also well within acceptable thresholds, at 6.3% and 0.88% respectively, indicating minimal reliance on interest-generating instruments. While the stock is currently fully compliant, halal investors should periodically monitor its interest income and debt levels to ensure they remain below the 5% and 33% AAOIFI thresholds during future earnings reports. Ross Stores, Inc. operates in the Consumer Cyclical sector under the Apparel - Retail industry and is headquartered in Dublin, CA, US. The company is led by CEO James G. Conroy and employs approximately 107,000 people.

ROST 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. ROST passed 4 of these 4 screens.

Although ROST passes all shariah screens, it does earn $200.6M in interest income (0.88% 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 $0.88 to purify the income.

ROST 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.