What is Telefonaktiebolaget LM Ericsson (publ)'s Shariah compliance score?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) has a Shariah compliance score of 71/100 (Grade: B+, Good). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does Telefonaktiebolaget LM Ericsson (publ) pass AAOIFI screening?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) passes AAOIFI Shariah screening. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. ERIC's debt-to-market-cap is 11.3%.

How much purification is needed for Telefonaktiebolaget LM Ericsson (publ)?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for Telefonaktiebolaget LM Ericsson (publ) (ERIC) using the latest financial data.

Where can I screen Telefonaktiebolaget LM Ericsson (publ) for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Telefonaktiebolaget LM Ericsson (publ) (ERIC) and 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

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Compliance Status

Halal

Screened on Oct 19, 2026 · AAOIFI Standard 21

B+

Good

71Score

Is Telefonaktiebolaget LM Ericsson (publ) (ERIC) halal? Halal. Based on AAOIFI screening, Telefonaktiebolaget LM Ericsson (publ) passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 71/100 (Grade: B+).

Quote this verdict

HalalScreener rates Telefonaktiebolaget LM Ericsson (publ) (ERIC) Halal, 71/100, grade B+ under AAOIFI Standard 21, screened Oct 19, 2026. Source: https://halalscreener.app/en/stock/ERIC

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%.

11.3% of 30.0% limit

PRO DETAIL

The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

What this means for you

You can own ERIC

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

Purification amount is Pro

We have screened ERIC's prohibited income, but the exact share you would need to purify is part of Pro.

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ERIC: Is Telefonaktiebolaget LM Ericsson (publ) Halal?

Telefonaktiebolaget LM Ericsson (publ)

NASDAQTechnologySE

$10.55

-1.49%

Market Cap: 35.3B

Screened on a market cap of 349.9B

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About Telefonaktiebolaget LM Ericsson (publ)

Telefonaktiebolaget LM Ericsson (publ), along with its various subsidiaries, operates as a global supplier of communication infrastructure, software, and service solutions, primarily serving the telecommunications industry and other diverse sectors. The company's business is organized into four distinct segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks division focuses on delivering cutting-edge radio access network (RAN) solutions for a wide array of network spectrums, encompassing robust integrated hardware and software, complete antenna and transport systems, and a full spectrum of services for network setup and ongoing maintenance. Digital Services provides advanced software-driven solutions for critical functions like business support systems (BSS), operational support systems (OSS), communication platforms, core network architecture, and cloud infrastructure. The Managed Services segment offers telecom operators an extensive range of provisions, including comprehensive network and IT management, network design and optimization, and application development and maintenance. Finally, the Emerging Business and Other segment encompasses innovative ventures such as Internet of Things (IoT) technologies, iconectiv, Cradlepoint (known for its wireless edge WAN 4G and 5G enterprise solutions), Red Bee Media, MediaKind, and other developing enterprises. Established in 1876 and based in Stockholm, Sweden, Ericsson maintains a substantial worldwide footprint, with operations spanning North America, Europe and Latin America, the Middle East and Africa, Southeast Asia, Oceania, India, Northeast Asia, and numerous other international markets.

Sector: Technology · Industry: Communication Equipment

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 19, 2026

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Screened according to AAOIFI Standard 21

Compliance History

Halalnow
since Aug 2026
Not Halal
until the change above

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

Fiscal: Q3 2026Data source: FMP

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Frequently Asked Questions

Is Telefonaktiebolaget LM Ericsson (publ) (ERIC) halal to invest in?

Based on AAOIFI Standard 21 screening, Telefonaktiebolaget LM Ericsson (publ) (ERIC) is rated Halal with a compliance grade of B+ (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 Telefonaktiebolaget LM Ericsson (publ) get a B+ compliance rating?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) received a grade of B+ (Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 11.3% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Telefonaktiebolaget LM Ericsson (publ)'s Shariah verdict?

Telefonaktiebolaget LM Ericsson (publ)'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 Telefonaktiebolaget LM Ericsson (publ) re-screened for Shariah compliance?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) 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: Oct 19, 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.