Is BorgWarner Inc. (BWA) halal? Doubtful. Based on AAOIFI screening, BorgWarner Inc. passes the business activity screen but has financial ratios approaching AAOIFI limits with a compliance score of 65/100 (Grade: B).

BorgWarner Inc.

BWA: Is BorgWarner Inc. Halal?

Doubtful

BorgWarner Inc.

NYSEConsumer CyclicalUS

$72.63

-5.71%

Purify ~0.5% of income

About BorgWarner Inc.

BorgWarner Inc. provides solutions for combustion, hybrid, and electric vehicles worldwide. The company operates through four segments: Air Management, E-Propulsion & Drivetrain, Fuel Injection, and Aftermarket. The Air Management segment offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, canisters, cabin heaters, battery modules and systems, battery packs, battery heaters, and battery charging. The E-Propulsion & Drivetrain segment provides rotating electrical components, power electronics, control modules, software, friction, and mechanical products for automatic transmissions and torque-management products. The Fuel Injection segment develops and manufactures gasoline and diesel fuel injection components and systems. The Aftermarket segment sells products and services to independent aftermarket customers and original equipment service customers. This segment provides a range of solutions, including fuel injection, electronics and engine management, maintenance, and test equipment and vehicle diagnostics. The company sells its products to original equipment manufacturers of light vehicles, which comprise passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, including medium-duty and heavy-duty trucks, and buses; and off-highway vehicles, such as agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles. The company was formerly known as Borg-Warner Automotive, Inc. BorgWarner Inc. was incorporated in 1987 and is headquartered in Auburn Hills, Michigan.

Sector: Consumer Cyclical 路 Industry: Auto - Parts

Why This Stock Is Doubtful

  • Debt is 25.5% of market cap, only 4.5 points below the 30% AAOIFI limit

Stocks are marked Doubtful when financial ratios pass but approach AAOIFI thresholds. Consider consulting a qualified scholar for a definitive ruling.

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 14, 2026
B

Acceptable

Acceptable but room for improvement

65Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap25.5% / 30.0%

Compliance History

  1. Doubtfulnow

    since Jun 2026

  2. Halal

    until the change above

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

Screened: Jun 14, 2026Fiscal: Q1 2026Source: EDGAR

Purify Your BWA Dividends

0.5% non-compliant income

BWA has 0.5% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

14.9B

Price

$72.63

Sector

Consumer Cyclical

Industry

Auto - Parts

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Frequently Asked Questions

Is BorgWarner Inc. (BWA) halal to invest in?
BorgWarner Inc. (BWA) is rated Doubtful under AAOIFI Standard 21. It passes the business activity screen but one or more financial ratios are approaching (though not yet exceeding) the AAOIFI thresholds (30% for debt and interest deposits, 5% for prohibited income). Consult a qualified Islamic finance scholar for a personal ruling.
Why did BorgWarner Inc. get a B compliance rating?
BorgWarner Inc. (BWA) received a grade of B (Acceptable) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 25.5% (limit 30%); interest-bearing deposits of 13.7% (limit 30%); prohibited income of 0.46% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change BorgWarner Inc.'s Shariah verdict?
BorgWarner 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 BorgWarner Inc. re-screened for Shariah compliance?
BorgWarner Inc. (BWA) 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: Jun 14, 2026.

Screened according to AAOIFI Standard No. 21 路 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.