MASI

Masimo Corporation

HALAL

Score: 83/100

stock

Is MASI Halal?

Medical-technology company best known for noninvasive patient-monitoring and pulse-oximetry products — a permissible healthcare business, with acquisition-related leverage as the primary financial-screen consideration.

What You Should Know

Masimo Corporation is a publicly-traded medical-technology company that develops and manufactures noninvasive patient-monitoring technologies, including its signature pulse-oximetry and SET measure-through-motion sensors, brain-function and hemoglobin monitoring, and connected-care hospital-automation products, alongside a consumer-audio and health segment. Development and sale of medical-monitoring devices is a permissible healthcare activity at the activity level under standard Sharia methodology. The financial screen is the primary consideration: Masimo took on acquisition-related debt in connection with its consumer-audio (Sound United) acquisition, so the debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment, though the company generates strong operating cash flow and has been reducing leverage. Subject to that verification, most major Sharia advisory boards classify Masimo as permissible with purification of small interest-income components.

⚠️ Concerns

•Debt-to-market-cap ratio should be verified against the 33% Sharia threshold at the time of investment — Masimo carries acquisition-related leverage tied to its consumer-audio segment; this is the primary Sharia-screening consideration, though the company generates strong cash flow and is deleveraging
•Masimo has been evaluating strategic alternatives for its non-healthcare consumer-audio segment — corporate restructuring can affect leverage and the asset mix, so the financial screen should be re-verified following material transactions
•Interest income from cash balances should be checked against the 5% interest-income-to-revenue threshold and the relevant portion purified
•Receivables-to-assets ratio should be confirmed against the preferred board's threshold at the time of investment