What is Caterpillar Inc.'s Shariah compliance score?

Caterpillar Inc. (CAT) has a Shariah compliance score of 88/100 (Grade: A, Very Good) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does Caterpillar Inc. pass AAOIFI screening?

Caterpillar Inc. (CAT) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (CAT: 6.4%), (3) interest-bearing deposits below 30% (CAT: 2.3%), and (4) prohibited income below 5% (CAT: 0.9%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Caterpillar Inc. stock?

Caterpillar Inc. (CAT) has a non-permissible income ratio of 0.85%. Muslim investors should purify this percentage of any dividends received and capital gains realized from CAT shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Caterpillar Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Caterpillar Inc. (CAT) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about CAT's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

CAT: Is Caterpillar Inc. Halal?

Caterpillar Inc.

NYSEIndustrialsUS

$880.28

-3.85%

Market Cap: 405.5B

Compliance Status

Halal

Screened on Jul 13, 2026 · AAOIFI Standard 21

Very Good

88Score

Is Caterpillar Inc. (CAT) halal? Halal. Based on AAOIFI screening, Caterpillar Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 88/100 (Grade: A).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

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

6.4% of 30.0% limit

What this means for you

You can own CAT

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purify 0.9% of your income from CAT

That is about $0.90 of every $100 you earn from it. Donate this share to charity.

Calculate my exact amount

About Caterpillar Inc.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, and industrial gas turbines worldwide. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact track and multi-terrain loaders, excavators, motorgraders, pipelayers, road reclaimers, site prep tractors, skid steer loaders, telehandlers, and utility vehicles; mini, small, medium, and large excavators; compact, small, and medium wheel loaders; track-type tractors and loaders; and wheel excavators. The Resource Industries segment provides electric rope shovels, draglines, hydraulic shovels, rotary drills, hard rock vehicles, track-type tractors, mining trucks, longwall miners, wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, fleet management, landfill compactors, soil compactors, machinery components, autonomous ready vehicles and solutions, select work tools, and safety services and mining performance solutions. The Energy & Transportation segment offers reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services, remanufactured reciprocating engines and components, centrifugal gas compressors, diesel-electric locomotives and components, and other rail-related products and services for marine, oil and gas, industrial, and electric power generation sectors. The company's Financial Products segment provides operating and finance leases, installment sale contracts, working capital loans, and wholesale financing plans; and insurance and risk management products for vehicles, power generation facilities, and marine vessels. The All Other operating segment manufactures filters and fluids, undercarriage, ground engaging tools, etc. The company was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. The company was founded in 1925 and is headquartered in Deerfield, Illinois.

Sector: Industrials · Industry: Agricultural - Machinery

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 13, 2026

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

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

Fiscal: Q1 2026Data source: EDGAR

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Frequently Asked Questions

Is Caterpillar Inc. (CAT) halal to invest in?

Based on AAOIFI Standard 21 screening, Caterpillar Inc. (CAT) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did Caterpillar Inc. get a A compliance rating?

Caterpillar Inc. (CAT) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 6.4% (limit 30%); interest-bearing deposits of 2.3% (limit 30%); prohibited income of 0.85% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Caterpillar Inc.'s Shariah verdict?

Caterpillar 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 Caterpillar Inc. re-screened for Shariah compliance?

Caterpillar Inc. (CAT) 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 13, 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.