What is Telefonaktiebolaget LM Ericsson (publ)'s Shariah compliance score?

Telefonaktiebolaget LM Ericsson (publ)'s (ERIC) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does Telefonaktiebolaget LM Ericsson (publ) pass AAOIFI screening?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) 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% (ERIC: 121.8%), (3) interest-bearing deposits below 30% (ERIC: 149.9%), and (4) prohibited income below 5% (ERIC: 1.0%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Telefonaktiebolaget LM Ericsson (publ) stock?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) has a non-permissible income ratio of 1.05%. Muslim investors should purify this percentage of any dividends received and capital gains realized from ERIC 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 Telefonaktiebolaget LM Ericsson (publ) for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Telefonaktiebolaget LM Ericsson (publ) (ERIC) 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 ERIC's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

Is Telefonaktiebolaget LM Ericsson (publ) (ERIC) halal? Not Halal. Based on AAOIFI screening, Telefonaktiebolaget LM Ericsson (publ) passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

ERIC: Is Telefonaktiebolaget LM Ericsson (publ) Halal?

Not Halal

Telefonaktiebolaget LM Ericsson (publ)

NASDAQTechnologySE

$13.74

+3.15%

AvoidBorderlineClean

About Telefonaktiebolaget LM Ericsson (publ)

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors. It operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks segment offers radio access network solutions for various network spectrum bands, including integrated high-performing hardware and software. This segment also provides integrated antenna and transport solutions; and a range of service portfolio covering network deployment and support. The Digital Services segment offers software-based solutions for business support systems, operational support systems, communication services, core networks, and cloud infrastructure. The Managed Services segment provides networks and IT managed, network design and optimization, and application development and maintenance services to telecom operators. The Emerging Business and Other segment includes emerging businesses comprising Internet of Things; iconectiv; Cradlepoint that offers wireless edge WAN 4G and 5G enterprise solutions; and Red Bee Media, MediaKind, and other new businesses. It operates in North America, Europe and Latin America, the Middle East and Africa, South East Asia, Oceania, India, North East Asia, and internationally. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

Sector: Technology · Industry: Communication Equipment

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 18, 2026

Non-Compliant

Fails Shariah screening

0Score

Business Activity Screen

Passed

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

Financial Ratio Screen

Failed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap121.8% / 30.0%

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.

Screened: Jun 18, 2026Fiscal: FY 2025Source: FMP

Financial Overview

Market Cap

45.7B

Price

$13.74

Sector

Technology

Industry

Communication Equipment

Halal Alternatives in Technology

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

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Ubiquiti Inc.

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Red Cat Holdings, Inc.

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Platinum Analytics Cayman Limited Class A Ordinary Shares

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Frequently Asked Questions

Is Telefonaktiebolaget LM Ericsson (publ) (ERIC) halal to invest in?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) 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 Telefonaktiebolaget LM Ericsson (publ) get a F compliance rating?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 121.8% (limit 30%); interest-bearing deposits of 149.9% (limit 30%); prohibited income of 1.05% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Telefonaktiebolaget LM Ericsson (publ)'s Shariah verdict?

Telefonaktiebolaget LM Ericsson (publ)'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 Telefonaktiebolaget LM Ericsson (publ) re-screened for Shariah compliance?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) 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 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.