What is Lithia Motors, Inc.'s Shariah compliance score?

Lithia Motors, Inc. (LAD) has a Shariah compliance score of 0/100 (Grade: F, Non-Compliant). 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 Lithia Motors, Inc. pass AAOIFI screening?

Lithia Motors, Inc. (LAD) does not pass 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%. LAD's debt-to-market-cap is 149.2%.

How much purification is needed for Lithia Motors, Inc.?

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 Lithia Motors, Inc. (LAD) using the latest financial data.

Where can I screen Lithia Motors, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Lithia Motors, Inc. (LAD) 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.

LADNot HalalF

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Compliance Status

Not Halal

Screened on Oct 18, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Lithia Motors, Inc. (LAD) halal? Not Halal. Based on AAOIFI screening, Lithia Motors, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Lithia Motors, Inc. (LAD) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 18, 2026. Source: https://halalscreener.app/en/stock/LAD

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

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

149.2% 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

Most scholars advise not holding LAD

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

LAD: Is Lithia Motors, Inc. Halal?

Lithia Motors, Inc.

NYSEConsumer CyclicalUS

$295.14

Market Cap: 6.5B

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About Lithia Motors, Inc.

Lithia Motors, Inc. operates as a prominent automotive retail enterprise throughout the United States. Its business is strategically divided into three key segments: Domestic, Import, and Luxury vehicle sales. The company's comprehensive offerings encompass the sale of both brand-new and pre-owned automobiles, alongside a full spectrum of vehicle financing solutions. Customers can also access extended warranties, various insurance contracts, and protection services designed for vehicle and theft security. Beyond sales, Lithia Motors delivers automotive repair and maintenance expertise, and distributes vehicle body components and parts under its proprietary Driveway and GreenCars brands. As of February 18, 2022, the company managed 278 physical dealerships and extended its reach online through more than 300 distinct websites. Founded in 1946, Lithia Motors, Inc. has its corporate headquarters situated in Medford, Oregon.

Sector: Consumer Cyclical · Industry: Auto - Dealerships

Why this does not pass

Interest-bearing debt is 149.2% of market cap, over the 30% AAOIFI limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 18, 2026

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Institutional-grade Shariah analysis

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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

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

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

Fiscal: Q2 2026Data source: EDGAR

Halal Alternatives in Consumer Cyclical

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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Malayan United Industries Berhad

$0.04

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CUCKOO International (MAL) Berhad

$0.35

-0.01%

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Frequently Asked Questions

Is Lithia Motors, Inc. (LAD) halal to invest in?

Lithia Motors, Inc. (LAD) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Lithia Motors, Inc. get a F compliance rating?

Lithia Motors, Inc. (LAD) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 149.2% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Lithia Motors, Inc.'s Shariah verdict?

Lithia Motors, 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 Lithia Motors, Inc. re-screened for Shariah compliance?

Lithia Motors, Inc. (LAD) 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 18, 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.