AVT

Avnet, Inc.

DOUBTFUL

Score: 58/100

stock

Is AVT Halal?

Electronics distributor — a permissible distribution business, but a working-capital-heavy model often pushes the debt and receivables screens above the thresholds.

What You Should Know

Avnet, Inc. is one of the largest global distributors of electronic components and embedded solutions, connecting semiconductor and component manufacturers with a broad base of customers. Distributing electronic components is itself a clearly permissible activity with no haram revenue line. The complication is financial: Avnet's low-margin, working-capital-intensive model relies on substantial interest-bearing debt to finance inventory and receivables, so its total-debt-to-market-cap ratio frequently sits near or above the 33% threshold and its receivables ratio (total receivables / total assets) is structurally high and can breach the board's threshold. Because both deciding screens are often close to or over the limits, the stock is best treated as doubtful pending confirmation of both ratios on the latest filings.

⚠️ Concerns

•Working-capital-intensive model carries substantial interest-bearing debt — total debt / market cap frequently sits near or above the 33% threshold, a deciding screen, and must be confirmed against the latest filings
•Distribution model leaves a structurally high receivables ratio — confirm total receivables / total assets against the board's threshold (49–70%) against the latest filings
•The verdict is ratio-dependent and can change as the balance sheet shifts
•Incidental interest income should be checked against the 5% threshold and the corresponding portion of returns purified