Is Goodyear Stock (GT) Halal? A Complete Analysis

The Short Answer

Goodyear stock (GT) is doubtful under standard Sharia screening. Manufacturing tires is itself a clearly permissible activity with no haram revenue line. The complication is financial: Goodyear carries a large amount of interest-bearing debt relative to its market capitalization, and its total-debt-to-market-cap ratio frequently exceeds the 33% threshold.

Because the deciding factor is leverage that typically sits above the limit, the stock is best treated as doubtful pending confirmation of the debt ratio on the latest filings. Interest income is incidental, but the heavy reliance on debt financing is the core screening concern.

Sharia Screening Methodology

Islamic scholars use several criteria to screen stocks:

• Business activity screen: Is the company's primary business halal?
• Debt ratio: Total debt / market cap must be under 33%
• Interest income: Interest income / total revenue must be under 5%
• Haram revenue: Revenue from haram sources must be under 5%
• Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)

Goodyear's Business Activity

The Goodyear Tire & Rubber Company is one of the world's largest tire manufacturers. Its activity is:

• Consumer tires: Tires for passenger cars and light trucks
• Commercial tires: Tires for trucks and other commercial vehicles
• Retail & service: A large company-owned retail and service network

The product is permissible; the deciding factor is the company's heavy debt load.

Why GT Is Doubtful

1. Heavy Interest-Bearing Debt

Goodyear carries a large amount of interest-bearing debt relative to its market capitalization, and its total debt / market cap frequently exceeds the 33% Sharia threshold. This is the deciding factor and is why the stock is treated as doubtful rather than clearly halal.

2. Debt-Dependent Verdict

The verdict is debt-dependent and can change as the company executes its transformation plan and pays down debt. Confirm the debt ratio on the latest filings before investing rather than relying on past results.

3. Interest on Cash to Purify

Incidental interest income on cash should be checked against the 5% threshold and the corresponding portion of returns purified, though leverage — not interest income — is the binding screen here.

Financial Ratios (2025)

Based on Goodyear's most recent financial statements:

• Total Debt / Market Cap: Frequently exceeds 33% — the deciding screen ❌/⚠️
• Interest Income / Revenue: Verify against the 5% threshold and purify ⚠️
• Haram Revenue: None material — tire manufacturing ✅
• Business Activity: Permissible — tire manufacturing ✅

Verdict from Major Screening Agencies

Goodyear stock is generally screened as doubtful by:

• Zoya App — Often flagged on the debt screen ⚠️
• Musaffa — Frequently non-compliant on leverage pending confirmation ⚠️
• Most major Sharia advisory boards — Verdict depends on the latest debt ratio ⚠️

Bottom Line

Goodyear (GT) is doubtful for Muslim investors. The tire business is permissible, but the company's heavy interest-bearing debt frequently pushes total debt / market cap above the 33% threshold — the deciding screen. Confirm the debt ratio on the latest filings before investing; for many investors it will not pass, pushing the verdict toward non-compliant.

For lower-debt auto-supply exposure, compare GT with peers like Aptiv (APTV), Genuine Parts (GPC), and PACCAR (PCAR). Review our guide to haram investments to avoid for cleaner alternatives.