PLXS

What You Should Know

Plexus Corp. is a contract electronics manufacturing and engineering-services company that designs, manufactures, and provides aftermarket services for complex products in the healthcare/life-sciences, industrial, and aerospace/defense sectors. Providing design and manufacturing services is a clearly permissible activity, so the business-activity screen passes cleanly. Plexus typically runs a conservative balance sheet with modest debt, so the total-debt-to-market-cap ratio is generally within the 33% threshold; because it is a manufacturing services business, the receivables ratio (total receivables / total assets) is the screen most worth confirming against the latest filings, since contract manufacturers carry large receivables and inventory. Incidental interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified. On that basis Plexus is generally screened as halal, with routine purification of minor interest income.