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Is Caterpillar Inc. (CAT) halal?

NYSE · Industrials — Machinery
Compliant

Caterpillar Inc. is compliant under Sanad's AAOIFI Standard 21 screen: interest-bearing debt is 12.5% of market capitalisation (limit 30%), and non-permissible (interest) income is 0.7% of revenue (limit 5%).

The AAOIFI financial screen

TestResultLimitStatus
Interest-bearing debt ÷ market capitalisation12.5%< 30%Within limit
Non-permissible income ÷ revenue0.7%< 5%Within limit

A ratio at or above 30% (debt) or 5% (income) fails. A debt ratio of 27–30% or an income ratio of 4–5% is marked "close to limit" and makes the company questionable.

Purification

Even a compliant company earns a little interest. About 0.7% of Caterpillar Inc.'s revenue is non-permissible income, so a shareholder who receives dividends would normally donate about 0.7% of each dividend. Open the full analysis for the amount per share.

About Caterpillar Inc.

Caterpillar Inc. is a global industrial manufacturer specializing in heavy equipment, engines and related services for infrastructure, resource and energy markets. The company designs and produces a broad portfolio of construction and mining machinery, including excavators, loaders, dozers, haul trucks and motor graders, as well as off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Caterpillar serves customers in…

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Frequently asked questions

Is Caterpillar Inc. (CAT) halal?

Caterpillar Inc. is compliant under Sanad's AAOIFI Standard 21 screen: interest-bearing debt is 12.5% of market capitalisation (limit 30%), and non-permissible (interest) income is 0.7% of revenue (limit 5%).

What makes a stock halal or haram?

Under AAOIFI Standard 21 a company must first have a permissible core business (no conventional banking or insurance, alcohol, tobacco, gambling or similar). Then interest-bearing debt must be under 30% of its market value and interest income under 5% of its revenue.

How much of Caterpillar Inc.'s dividends should be purified?

About 0.7% of each dividend, the share of the company's income that is not permissible. Donate that amount rather than keeping it.

How often is this updated?

Prices refresh daily and the ratios update when the company files new financial statements, usually every quarter. This page's data was last updated 2026-09-16.

Screened against AAOIFI Standard 21 using the company's latest reported financials (data updated 2026-09-16). This is an automated screen, not a fatwa; scholars differ on some thresholds. What each verdict means.