Is Illinois Tool Works Stock Halal?
Illinois Tool Works Inc. · ITW · NYSE
Illinois Tool Works Inc. (ITW) passes the screens we can compute (data as of 2026-03-31) — interest-bearing debt / market cap 12.4%, cash + interest-bearing securities / market cap 1.1%, impermissible income / total revenue 0.0% — but one screen requires case-by-case judgment.
Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-15
Our Analysis
Illinois Tool Works Inc. is a publicly traded company in its sector. Review the latest 10-K segment disclosure for revenue mix.
Computed screens are mixed as of 2026-03-31: debt 12.4%, cash/securities 1.1%, impermissible income pending full filing verification. Treat as conditional until the flagged line is confirmed against the annual report.
Zoya's public page did not return a clear status when we checked (checked 2026-06-15). Musaffa rates it doubtful. U.S. Shariah ETFs SPUS and HLAL publish holdings on their own schedules — absence from a top-holdings list is not the same as a failed screen; verify current ETF holdings if index validation matters to you.
Practical takeaway: do not size up until the conditional line is verified against the filing or a screener you trust; the dated ratio table on this page shows exactly what is still open.
Business Activity Screen
Illinois Tool Works Inc. is a global enterprise specializing in the production and distribution of a wide array of industrial goods and specialized equipment. The company operates through seven distinct divisions: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM division supplies plastic and metal components, various fastening solutions, and integrated assemblies for automobiles, ligh
Interest income not separately material in the annual filing (Illinois Tool Works Inc. FY2025 (fiscal year ended 2025-12-31, Form 10-K)); immaterial vs total revenue — well under 5%.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 12.4% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 1.1% | < 30% | Pass |
| Impermissible income / total revenueInterest income not separately material in the annual filing (Illinois Tool Works Inc. FY2025 (fiscal year ended 2025-12-31, Form 10-K)); immaterial vs total revenue — well under 5%. | 0.0% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · 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 Illinois Tool Works 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) | 12.4% | 1.1% | < 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. | 12.4% | 1.1% | < 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. | 56.2% | 5.1% | < 33.33% of total assets | Fail |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — 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 →
Other stocks where Shariah screeners disagree
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.
AbbVieABBV
Passes market-cap screens · fails MSCI/FTSE (total assets)
Air Products and ChemicalsAPD
Passes market-cap screens · fails MSCI/FTSE (total assets)
AirbnbABNB
Passes market-cap screens · fails MSCI/FTSE (total assets)
AmgenAMGN
Passes market-cap screens · fails MSCI/FTSE (total assets)
APAAPA
Fails AAOIFI market-cap · passes MSCI/FTSE (total assets)
AppLovinAPP
Passes market-cap screens · fails MSCI/FTSE (total assets)
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
Musaffa
Public page rates the stock doubtful (checked 2026-06-15).
Source →SP Funds S&P 500 Sharia ETF (SPUS)
Bulk research pass — verify current SPUS schedule of investments before citing as held or excluded (reference SOI dated 2026-02-28).
Source →Wahed FTSE USA Shariah ETF (HLAL)
Bulk research pass — verify current HLAL holdings before citing as held or excluded (reference list 2026-06-05).
Source →
What to do instead
You don't have to choose between investing and your values — screened alternatives exist for nearly every position.
Related guides
Consider Consulting an Islamic Scholar
Major whether Illinois Tool Works Inc. is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
Important: HalalWallet is an educational comparison platform. We do not provide financial, legal, or religious advice.
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- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Consult a qualified Islamic finance advisor or scholar for guidance on your individual circumstances.
Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
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