Is The Home Depot, Inc. (HD) stock halal?

Based on our AAOIFI-based screen (data as of 2026-05-03), The Home Depot, Inc. passes both the business-activity and financial-ratio screens. A pass is dated — ratios move with the share price — and incidental interest income should be purified.

Does The Home Depot, Inc. pass the AAOIFI financial ratio screen?

As of 2026-05-03: interest-bearing debt is 14.8% of market cap (limit < 30%) — pass; cash plus interest-bearing securities is 0.5% (limit < 30%) — pass. The impermissible-income ratio (< 5% limit) also passes. Ratios are recomputed as new filings and prices move.

Do I need to purify dividends from The Home Depot, Inc.?

Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash, and the standard practice is to donate the proportional share of dividends attributable to that income. Our purification calculator does this math for your holding.

Is The Home Depot Stock Halal? The Home Depot, Inc. (HD) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-05-03) interest-bearing debt is 14.8% of market cap and cash plus interest-bearing securities 0.5% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified. Reviewed 2026-06-15. Published by HalalWallet.

Is The Home Depot Stock Halal?

Q: Is The Home Depot Stock Halal?

Halal: The Home Depot, Inc. (HD) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-05-03) interest-bearing debt is 14.8% of market cap and cash plus interest-bearing securities 0.5% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified. (Financial data as of 2026-05-03; basis: AAOIFI Shariah standards.)

Q: Do I need to purify dividends from The Home Depot, Inc.?

Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash, and the standard practice is to donate the proportional share of dividends attributable to that income. Our purification calculator does this math for your holding.

The Home Depot, Inc. · HD · NYSE

HalalGenerally permissible

The Home Depot, Inc. (HD) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-05-03) interest-bearing debt is 14.8% of market cap and cash plus interest-bearing securities 0.5% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.

Financial data as of 2026-05-03 · Screening basis: AAOIFI · Last reviewed 2026-06-15

Our Analysis

Home Depot is a clean case for halal investors. Its business is straightforward retail — selling building materials, tools, appliances, and home-improvement goods to consumers and trade professionals through its big-box stores and website. Retailing permissible goods raises no business-activity concern, so the qualitative screen passes without complication.

The financial ratios are comfortably inside AAOIFI limits. Home Depot carries moderate interest-bearing debt relative to its market capitalization (well under the 30% threshold), holds very little excess interest-bearing cash, and earns only a tiny amount of interest income — about 0.1% of revenue on our screen, far below the 5% limit. One detail worth knowing: Home Depot's consumer and professional credit-card programs are issued and financed by third-party banks, not on Home Depot's own balance sheet, so they do not turn the retailer into a conventional lender. This is why Zoya, Musaffa, and Muslim Xchange all classify the stock as compliant.

The practical takeaway: Home Depot passes both screens cleanly today. As always, a pass is dated — ratios move with the share price and new filings — so check the data-as-of date on this page, and purify the small proportional share of any dividends attributable to incidental interest income.

Business Activity Screen

Pass· impermissible revenue ≈ 0.1% (AAOIFI limit < 5%)

The Home Depot is the largest home-improvement retailer in the United States, selling building materials, tools, appliances, and home-improvement products to DIY consumers, professional contractors, and tradespeople through big-box stores and online. Retailing permissible goods is a permissible business activity.

Core home-improvement retail revenue raises no business-screen issues. The one review point is a small amount of interest income — roughly 0.1% of revenue on our screen, far below the 5% AAOIFI threshold; the standard treatment is to purify the proportional share of dividends attributable to it. Home Depot's consumer and pro credit-card programs are issued and financed by third-party banks rather than on Home Depot's own balance sheet, so they do not make the company a conventional lender. No alcohol, gambling, tobacco, or interest-based lending lines are disclosed.

Financial Ratio Screen

Screen	Value	AAOIFI limit	Result
Interest-bearing debt / market cap	14.8%	< 30%	Pass
Cash + interest-bearing securities / market cap	0.5%	< 30%	Pass
Impermissible income / total revenueInterest income $141.0M on $164.68B total revenue (The Home Depot, Inc. FY2025 (fiscal year ended 2026-02-01, Form 10-K)) = 0.1% — under AAOIFI's 5% limit.	0.1%	< 5%	Pass

Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-05-03 · thresholds per AAOIFI Shariah standards.

This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →

How The Home Depot screens across Shariah standards

The standards disagree on this company. It passes some Shariah screens and fails others — which is exactly why you may see a different answer in different apps. Our headline verdict uses AAOIFI, the strictest and most widely cited mainstream standard.

Standard	Debt	Cash & interest securities	Limit / basis	Result
AAOIFI (our standard)	14.8%	0.5%	< 30% of market cap	Pass
Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison.	14.8%	0.5%	< 33% of market cap	Pass
MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce.	44.8%	1.5%	< 33.33% of total assets	Fail

HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-05-03) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →

These companies pass under some mainstream standards and fail under others — the same pattern as this verdict. That is why two apps can show different answers.

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