GIL

What You Should Know

Gildan Activewear Inc. is a vertically integrated manufacturer of everyday basic apparel — activewear, t-shirts, fleece, socks, underwear, and hosiery — sold to wholesale printwear distributors and retailers under brands including Gildan, American Apparel, and others. Manufacturing and selling basic clothing is a permissible activity, so the business-activity screen passes, and the product mix (unbranded basics) carries no modesty concern of the kind that affects intimate-apparel or luxury-fashion names. The verdict depends on the balance sheet: Gildan carries interest-bearing debt and funds capital-intensive manufacturing, so confirm the total-debt-to-market-cap ratio against the 33% threshold and the receivables ratio against the board's threshold using the latest filings. Interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified. Assuming the ratios hold, GIL is generally screened as halal.