Is Lithia Motors, Inc. (LAD) halal? Not Halal. Based on AAOIFI screening, Lithia Motors, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Lithia Motors, Inc.

LAD: Is Lithia Motors, Inc. Halal?

Not Halal

Lithia Motors, Inc.

NYSEConsumer CyclicalUS

$295.50

+0.67%

About Lithia Motors, Inc.

Lithia Motors, Inc. operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Luxury. It offers new and used vehicles; vehicle financing services; warranties, insurance contracts, and vehicle and theft protection services; and automotive repair and maintenance services, as well as sells vehicle body and parts under the Driveway and GreenCars brand names. As of February 18, 2022, the company operated through 278 stores. It also offers its products online through 300 websites. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.

Sector: Consumer Cyclical 路 Industry: Auto - Dealerships

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 17, 2026
F

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 Cap122.3% / 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 17, 2026Fiscal: Q1 2026Source: EDGAR

Financial Overview

Market Cap

6.7B

Price

$295.50

Sector

Consumer Cyclical

Industry

Auto - Dealerships

Halal Alternatives in Consumer Cyclical

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

Free 路 No credit card required

Track LAD and 10,000+ stocks with AI insights

Create your free account to unlock AI-powered compliance analysis, track your portfolio, calculate purification, and get unlimited AAOIFI screening.

10,000+ assets AAOIFI standards Free watchlist

Frequently Asked Questions

Is Lithia Motors, Inc. (LAD) halal to invest in?
Lithia Motors, Inc. (LAD) 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 Lithia Motors, Inc. get a F compliance rating?
Lithia Motors, Inc. (LAD) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 122.3% (limit 30%); interest-bearing deposits of 3.5% (limit 30%); prohibited income of 1.36% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Lithia Motors, Inc.'s Shariah verdict?
Lithia Motors, 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 Lithia Motors, Inc. re-screened for Shariah compliance?
Lithia Motors, Inc. (LAD) 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 17, 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.