What is The Home Depot, Inc.'s Shariah compliance score?

The Home Depot, Inc. (HD) has a Shariah compliance score of 87/100 (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 The Home Depot, Inc. pass AAOIFI screening?

The Home Depot, Inc. (HD) 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% (HD: 14.7%), (3) interest-bearing deposits below 30% (HD: 0.4%), and (4) prohibited income below 5% (HD: 0.1%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for The Home Depot, Inc. stock?

The Home Depot, Inc. (HD) has a non-permissible income ratio of 0.06%. Muslim investors should purify this percentage of any dividends received and capital gains realized from HD 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 The Home Depot, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for The Home Depot, Inc. (HD) 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 HD's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

HD: Is The Home Depot, Inc. Halal?

The Home Depot, Inc.

NYSEConsumer CyclicalUS

$338.87

+0.19%

Market Cap: 337.9B

Compliance Status

Halal

Screened on Jul 15, 2026 · AAOIFI Standard 21

Very Good

87Score

Is The Home Depot, Inc. (HD) halal? Halal. Based on AAOIFI screening, The Home Depot, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 87/100 (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%.

14.7% of 30.0% limit

What this means for you

You can own HD

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

Purify 0.1% of your income from HD

That is about $0.10 of every $100 you earn from it. Donate this share to charity.

Calculate my exact amount

About The Home Depot, Inc.

The Home Depot, Inc. operates as a prominent retailer specializing in home renovation and improvement. Through its expansive network of "The Home Depot" stores, it furnishes consumers with an extensive array of goods, including building materials, home enhancement products, lawn and garden supplies, decorative items, and facilities maintenance, repair, and operational (MRO) supplies. In addition to selling products, the company extends professional installation services for key home features like flooring, cabinetry (including makeovers), countertops, furnaces and central air conditioning systems, and window replacements. Customers can also access tool and equipment rental options. Its diverse clientele includes both individual homeowners and a broad spectrum of professional clients, such as renovators, general contractors, maintenance personnel, handymen, property managers, building service contractors, and specialized tradespeople like electricians, plumbers, and painters. The firm also distributes its merchandise through several online platforms, notably homedepot.com, along with specialized sites such as blinds.com for bespoke window coverings and thecompanystore.com for home textiles and decorative goods. By the end of 2021, the corporation operated a total of 2,317 outlets across the United States. Incorporated in 1978, The Home Depot, Inc. maintains its corporate headquarters in Atlanta, Georgia.

Sector: Consumer Cyclical · Industry: Home Improvement

Read Full Analysis

Is Home Depot (HD) Stock Halal? Shariah Compliance Analysis

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 15, 2026

Compliance History

Halal, unchanged since Jun 2026.

No status changes recorded since we began tracking.

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

Fiscal: Q1 2026Data source: EDGAR

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Frequently Asked Questions

Is The Home Depot, Inc. (HD) halal to invest in?

Based on AAOIFI Standard 21 screening, The Home Depot, Inc. (HD) 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 The Home Depot, Inc. get a A compliance rating?

The Home Depot, Inc. (HD) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 14.7% (limit 30%); interest-bearing deposits of 0.4% (limit 30%); prohibited income of 0.06% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change The Home Depot, Inc.'s Shariah verdict?

The Home Depot, 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 The Home Depot, Inc. re-screened for Shariah compliance?

The Home Depot, Inc. (HD) 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 15, 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.