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

Lithia Motors, Inc.'s (LAD) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does Lithia Motors, Inc. pass AAOIFI screening?

Lithia Motors, Inc. (LAD) does not pass 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% (LAD: 105.6%), (3) interest-bearing deposits below 30% (LAD: 3.0%), and (4) prohibited income below 5% (LAD: 1.4%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

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

Lithia Motors, Inc. (LAD) has a non-permissible income ratio of 1.36%. Muslim investors should purify this percentage of any dividends received and capital gains realized from LAD 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 Lithia Motors, Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Lithia Motors, Inc. (LAD) 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 LAD's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

LAD: Is Lithia Motors, Inc. Halal?

Lithia Motors, Inc.

NYSEConsumer CyclicalUS

$339.16

+2.35%

Market Cap: 7.7B

Compliance Status

Not Halal

Screened on Jul 17, 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).

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%.

105.6% of 30.0% limit

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

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

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 17, 2026

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: Q1 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:

MARA+

Marriott International, Inc.

$366.24

-0.85%

FWDIA+

Forward Industries, Inc.

$3.96

+11.86%

ROLA+

Rollins, Inc.

$44.77

-0.40%

TSCOA+

Tractor Supply Company

$30.24

+1.65%

GNTXA+

Gentex Corporation

$24.35

-2.25%

More Consumer Cyclical Stocks

AMZN

Amazon.com, Inc.

A+

TSLA

Tesla, Inc.

The Home Depot, Inc.

MCD

McDonald's Corporation

B+

BKNG

Booking Holdings Inc.

LOW

Lowe's Companies, Inc.

Free · No credit card required

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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 105.6% (limit 30%); interest-bearing deposits of 3.0% (limit 30%); prohibited income of 1.36% (limit 5%). 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: Jul 17, 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.