One of the most favorite stocks is Coca-Cola Co, but when Muslims want to invest, they start searching if this stock is halal or haram
Coca-Cola Business Activities
Coca-Cola Co generates revenue from nonalcoholic beverages sold in more than 200 countries. The company’s segments include Europe, geographical region and Africa; Latin America; North America; Asia Pacific; Bottling Investments and company. It owns, licenses, and markets more than 500 nonalcoholic beverage brands like Coca-Cola, Sprite, Fanta, and other sparkling soft drinks. Additionally, Coca-Cola Co markets beverages like waters, flavored waters and enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, sports drinks, dairy, and energy drinks. Currently, the company is looking for more innovative ways of producing goods, significantly reducing sugar in all drinks. The company also constantly seeks to bring positive changes into communities through its water replenishment, recycling, and carbon emissions reduction activities. Furthermore, Coca-Cola employs over 700,000 people worldwide now, and it is bringing more and more employment opportunities to local communities.
Here we check the compliance status of Coca-Cola.
Firstly, the company passes a business activity screening. Revenue derived from impermissible and questionable business activities does not exceed 0.02% of its total revenue.
Secondly, it successfully passes financial screening as well. The company’s debt that generates interest is 23.19% of its market cap, which is enough to be less than the indicated 30%.
Thirdly, the amount of deposits, investments, or debt a company extends intending to receive interest is 4.01% of its market cap, which is far less than the allowed 30%.
|Cash & Equivalents
So, based on the data mentioned above, we can say that Coca-Cola stock is an excellent option for Muslim investors because it passes all the criteria to be found halal and not haram. However, some other platforms run extra screening analysis to check the stock’s compliance status. Of course, it depends on you which screening criteria you want to follow to screen the stocks.
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