Allison Transmission Holdings, Inc.

ALSN: Is Allison Transmission Holdings, Inc. Halal?

Allison Transmission Holdings, Inc.

NYSEConsumer CyclicalUS

$118.86

-1.79%

Market Cap: 9.9B

Compliance Status

Doubtful

Screened on Jul 16, 2026 · AAOIFI Standard 21

B

Acceptable

66Score

Is Allison Transmission Holdings, Inc. (ALSN) halal? Doubtful. Based on AAOIFI screening, Allison Transmission Holdings, Inc. passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 66/100 (Grade: B).

Business activity

What the company sells is permissible.

Passed

Company debt

Close to the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

25.2% of 30.0% limit

What this means for you

You may own ALSN, with caution

Its numbers sit close to AAOIFI limits. Cautious investors may prefer alternatives or ask a scholar first.

About Allison Transmission Holdings, Inc.

Allison Transmission Holdings, Inc. (ALSN), along with its affiliates, specializes in the global development, manufacturing, and sale of fully-automatic transmissions. These robust systems are engineered for both medium and heavy-duty commercial vehicles, as well as medium and heavy-tactical defense vehicles utilized by the U.S. military. The company's diverse product portfolio serves a broad spectrum of applications. This includes on-highway vehicles such as trucks for distribution, refuse collection, construction, fire, and emergency services, alongside school and transit buses, and recreational motor homes. Furthermore, Allison transmissions power off-highway equipment for the energy, mining, and construction industries, as well as both wheeled and tracked defense vehicles. New transmissions are marketed under the well-known Allison Transmission brand, while their remanufactured offerings are sold as ReTran. Beyond core transmissions, the company supplies a range of ancillary products and services. These encompass branded replacement parts, essential support equipment, aluminum die-cast components, and other items critical for maintaining their extensive installed base of vehicles. Additionally, they provide defense kits, specialized engineering services, and extended transmission coverage to key clients, including original equipment manufacturers (OEMs), distributors, and the U.S. government. Allison Transmission reaches its customer base through a robust, independent global network comprising approximately 1,400 distributor and dealer locations. Established in 1915, the company was formerly known as Clutch Holdings, Inc. Its corporate headquarters are situated in Indianapolis, Indiana.

Sector: Consumer Cyclical · Industry: Auto - Parts

Why This Stock Is Doubtful

  • Debt is 25.2% of market cap, only 4.8 points below the 30% AAOIFI limit

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 16, 2026

Compliance History

  1. Doubtfulnow

    since Jul 2026

  2. Halal

    until the change above

  3. Doubtful

    until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR

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Frequently Asked Questions

Is Allison Transmission Holdings, Inc. (ALSN) halal to invest in?
Allison Transmission Holdings, Inc. (ALSN) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.
Why did Allison Transmission Holdings, Inc. get a B compliance rating?
Allison Transmission Holdings, Inc. (ALSN) received a grade of B (Acceptable) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 25.2% (limit 30%); interest-bearing deposits of 15.6% (limit 30%); prohibited income of 0.00% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Allison Transmission Holdings, Inc.'s Shariah verdict?
Allison Transmission Holdings, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Allison Transmission Holdings, Inc. re-screened for Shariah compliance?
Allison Transmission Holdings, Inc. (ALSN) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 16, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.