Is The Home Depot, Inc. (HD) halal? Halal. Based on AAOIFI screening, The Home Depot, Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 87/100 (Grade: A).

The Home Depot, Inc.

HD: Is The Home Depot, Inc. Halal?

Halal

The Home Depot, Inc.

NYSEConsumer CyclicalUS

$327.48

-0.34%

Purify ~0.1% of income

About The Home Depot, Inc.

The Home Depot, Inc. operates as a prominent retailer specializing in home renovation and improvement. Through its expansive network of "The Home Depot" stores, it furnishes consumers with an extensive array of goods, including building materials, home enhancement products, lawn and garden supplies, decorative items, and facilities maintenance, repair, and operational (MRO) supplies. In addition to selling products, the company extends professional installation services for key home features like flooring, cabinetry (including makeovers), countertops, furnaces and central air conditioning systems, and window replacements. Customers can also access tool and equipment rental options. Its diverse clientele includes both individual homeowners and a broad spectrum of professional clients, such as renovators, general contractors, maintenance personnel, handymen, property managers, building service contractors, and specialized tradespeople like electricians, plumbers, and painters. The firm also distributes its merchandise through several online platforms, notably homedepot.com, along with specialized sites such as blinds.com for bespoke window coverings and thecompanystore.com for home textiles and decorative goods. By the end of 2021, the corporation operated a total of 2,317 outlets across the United States. Incorporated in 1978, The Home Depot, Inc. maintains its corporate headquarters in Atlanta, Georgia.

Sector: Consumer Cyclical 路 Industry: Home Improvement

Read Full Analysis

Is Home Depot (HD) Stock Halal? Shariah Compliance Analysis

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 16, 2026
A

Very Good

Strong compliance across all metrics

87Score

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 Cap15.0% / 30.0%

Compliance History

Halal, unchanged since Jun 2026.

No status changes recorded since we began tracking.

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

Screened: Jun 16, 2026Fiscal: Q1 2026Source: EDGAR

Purify Your HD Dividends

0.1% non-compliant income

HD has 0.1% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

326.5B

Price

$327.48

Sector

Consumer Cyclical

Industry

Home Improvement

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Frequently Asked Questions

Is The Home Depot, Inc. (HD) halal to invest in?
Based on AAOIFI Standard 21 screening, The Home Depot, Inc. (HD) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did The Home Depot, Inc. get a A compliance rating?
The Home Depot, Inc. (HD) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 15.0% (limit 30%); interest-bearing deposits of 0.4% (limit 30%); prohibited income of 0.06% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change The Home Depot, Inc.'s Shariah verdict?
The Home Depot, 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 The Home Depot, Inc. re-screened for Shariah compliance?
The Home Depot, Inc. (HD) 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 16, 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.