Is ZTS (Zoetis Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, ZTS 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 (19.28% vs ≤33% threshold), interest income ratio (0.98% vs ≤5% threshold), and cash & securities ratio (4.70% vs ≤33% threshold).

Zoetis Inc. is a global leader in the animal health industry, specializing in the discovery, development, and manufacturing of medicines, vaccines, and diagnostic products. The company serves both the livestock sector, including cattle, poultry, and fish, and the companion animal market, providing essential healthcare solutions for dogs, cats, and horses. For Muslim investors utilizing HalalStocks.co.uk, Zoetis represents a fully Shariah-compliant investment opportunity under AAOIFI standards. The stock successfully passes all four fundamental screens, meaning its core business of animal healthcare is permissible and its financial structure strictly aligns with Islamic guidelines. From an Islamic finance perspective, Zoetis demonstrates strong financial health with a low debt-to-market cap ratio of 19.3%, well below the 33% maximum. Additionally, the company relies very little on interest-generating activities, with interest income accounting for just 0.98% of total revenue, keeping it safely within halal boundaries. While there are no major scholarly debates regarding the permissibility of animal healthcare, Muslim investors should continue to monitor Zoetis's debt levels and interest income in future quarterly reports to ensure ongoing compliance with AAOIFI thresholds. Zoetis Inc. operates in the Healthcare sector under the Drug Manufacturers - Specialty & Generic industry and is headquartered in Parsippany, NJ, US. The company is led by CEO Kristin C. Peck and employs approximately 13,800 people.

ZTS 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. ZTS passed 4 of these 4 screens.

Although ZTS passes all shariah screens, it does earn $93.0M in interest income (0.98% 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 $0.98 to purify the income.

ZTS 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.