Costco Wholesale Corporation (COST) - Questionable
Costco Wholesale Corporation (COST) is classified as Questionable according to AAOIFI Shariah screening standards. This assessment is based on business activity screening and financial ratio analysis using the AAOIFI methodology.
Business Activity Screen
- Sector
- Consumer Defensive
- Industry
- Discount Stores
- Result
- Doubtful
- Reason
- This company requires further review: description contains keywords that may indicate non-permissible activities: liquor, tobacco; the industry "Discount Stores" has mixed revenue streams that require further analysis. The sector "Consumer Defensive" is not categorically excluded, but deeper analysis is recommended.
Financial Ratios
- Debt Ratio
- Value: 1.8% | Threshold: 30% | Result: Pass
- Cash & Interest-bearing Securities Ratio
- Value: 4.5% | Threshold: 30% | Result: Pass
- Non-Permissible Income Ratio
- Value: 0.2% | Threshold: 5% | Result: Pass
Dividend Purification
Purification percentage: 0.18%.Based on the company's financial statements, approximately 0.18% of dividend income comes from non-permissible sources; this is the share many investors donate to purify it. This is derived from identified interest income (0.18% of total income). Some scholars may differ on the exact calculation method.
About Costco Wholesale Corporation
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Sweden, Iceland, and New Zealand. It offers merchandise, including sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco; non-food merchandise comprising consumer electronics, appliances, small electrics, health and beauty aids, hardware, lawn and garden, sporting goods, tires, toys and seasonal, automotive, stamps, tickets, apparel, furniture, domestics, housewares, special order kiosks, and jewelry; and fresh food, such as meat, produce, deli, and bakery products. The company is also involved in warehouse ancillary operations, which include gasoline, pharmacies, food courts, optical, hearing aids, and tire installation centers. In addition, it engages in e-commerce, business centers, travel, and other businesses. Further, the company operates e-commerce sites; and offers branded and private-label products in various categories. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
