Is ZBH (Zimmer Biomet Holdings, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ZBH 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 ZBH.

Zimmer Biomet Holdings, Inc. is a global leader in musculoskeletal healthcare, designing and manufacturing orthopaedic reconstructive products. The company's extensive portfolio includes knee and hip replacements, sports medicine biologics, and advanced spine and facial reconstruction devices used by medical professionals worldwide. For Muslim investors using AAOIFI standards, Zimmer Biomet is currently classified as doubtful. While the company's life-enhancing medical devices easily pass the business activity screen, it unfortunately fails the financial screening due to a high debt-to-market capitalization ratio. The primary concern from an Islamic finance perspective is ZBH's reliance on interest-bearing debt, which accounts for 47.9% of its market cap, exceeding the 33% maximum limit. On a positive note, the company maintains excellent liquidity metrics, with cash and securities at just 3.8% and an interest income ratio of 0.00%. Since the core business is highly permissible and beneficial, halal investors should keep Zimmer Biomet on their watchlists. If the company actively pays down its debt or if its market capitalization increases enough to bring the debt ratio below 33%, it could become a viable shariah-compliant investment in the future. Zimmer Biomet Holdings, Inc. operates in the Healthcare sector under the Medical - Devices industry and is headquartered in Warsaw, IN, US. The company is led by CEO Ivan Tornos and employs approximately 17,000 people.

ZBH 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. ZBH passed 3 of these 4 screens.

ZBH 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.