Is SWK (Stanley Black & Decker, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SWK is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in SWK.

Stanley Black & Decker is a global leader in the industrial sector, manufacturing professional and consumer tools, outdoor equipment, and related accessories. The company is best known for its iconic BLACK+DECKER brand, supplying everything from cordless power tools to lawn and garden products across the Americas, Europe, and Asia. For Muslim investors, SWK currently holds a Doubtful shariah compliance status based on AAOIFI standards. Although its core manufacturing business is perfectly halal and its interest-bearing cash reserves are minimal at 2.4%, the company fails critical financial screening criteria regarding its leverage. The primary concern for Islamic investors is the company's debt-to-market capitalization ratio, which stands at an elevated 50.0%, significantly breaching the 33% maximum limit allowed by AAOIFI. Fortunately, its interest income remains well within acceptable bounds at just 0.98% of total revenue, meaning the day-to-day operations do not heavily rely on haram income streams. Since the non-compliance stems entirely from market capitalization and debt levels rather than impermissible business activities, investors should closely monitor SWK's balance sheet. A strategic reduction in corporate debt or a significant recovery in its share price could potentially bring the stock back into shariah compliance in the future. Stanley Black & Decker, Inc. operates in the Industrials sector under the Manufacturing - Tools & Accessories industry and is headquartered in New Britain, CT, US. The company is led by CEO Christopher John Nelson and employs approximately 48,000 people.

SWK 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. SWK passed 3 of these 4 screens.

SWK 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.