ALSN

What You Should Know

Allison Transmission Holdings, Inc. designs and manufactures fully automatic transmissions and electrified propulsion systems for commercial vehicles such as trucks, buses, and defense vehicles. Manufacturing vehicle propulsion systems is a clearly permissible activity with no haram revenue line of its own. The main screening item is the balance sheet: Allison carries debt that traces to its leveraged-buyout history, so its total-debt-to-market-cap ratio is the deciding item and should be confirmed against the 33% threshold using the latest filings — strong cash generation has supported steady deleveraging, but the ratio must be re-checked each time. Interest income on cash is incidental and should be checked against the 5% threshold and the corresponding portion of returns purified.