Is SN.L (Smith & Nephew plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SN.L 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 (28.53% vs ≤33% threshold), interest income ratio (0.33% vs ≤5% threshold), and cash & securities ratio (5.32% vs ≤33% threshold).

Smith & Nephew is a global medical technology giant specializing in keeping people active through orthopedic reconstruction , advanced wound management, and sports medicine. Their product portfolio is highly specific, ranging from hip and knee implants for joint replacement surgeries to minimally invasive tools used in repairing soft tissue injuries. They are a critical player in the healthcare sector, providing essential hardware for trauma stabilization and deformity correction worldwide. For Muslim investors, Smith & Nephew is classified as Halal, having passed all four AAOIFI shariah screening metrics. The company's business activities are inherently permissible as they focus on healthcare and healing, free from haram elements like alcohol, gambling, or pork products. This clean operational model makes it a straightforward choice for ethical portfolios focused on the medical devices sector. Financially, the company demonstrates discipline that aligns well with Islamic finance standards. Their interest-bearing debt relative to market capitalization is 28.5%, which is below the 33% cutoff, though investors should monitor this as it is closer to the limit than some peers. Furthermore, their liquid assets (cash and securities) sit at a healthy 5.3%, and interest income is minimal at 0 .33%, indicating the company relies on sales rather than interest generation for its profits. Investors should continue to monitor the company's debt levels in future quarterly reports, as significant borrowing or a drop in share price could push the debt-to-market-cap ratio closer to the 33% limit. However, currently, SN.L represents a compliant and ethically sound investment in the global healthcare infrastructure. Smith & Nephew plc operates in the Healthcare sector under the Medical - Devices industry and is headquartered in Watford, GB. The company is led by CEO Deepak S. Nath and employs approximately 17,349 people.

SN.L 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. SN.L passed 4 of these 4 screens.

Although SN.L passes all shariah screens, it does earn $19.0M in interest income (0.33% 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 $0.33 to purify the income.

SN.L was last screened on 2026-03-01. 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.