The Honest Company, Inc. (HNST) - Not Halal (Non-Compliant)
The Honest Company, Inc. (HNST) is classified as Not Halal (Non-Compliant) 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
- Household & Personal Products
- Result
- Pass
- Reason
- The sector "Consumer Defensive" and industry "Household & Personal Products" are not in the excluded categories.
Financial Ratios
- Debt Ratio
- Value: 3.4% | Threshold: 30% | Result: Pass
- Cash & Interest-bearing Securities Ratio
- Value: 38.3% | Threshold: 30% | Result: Fail
- Non-Permissible Income Ratio
- Value: 0.6% | Threshold: 5% | Result: Pass
Dividend Purification
Purification percentage: 0.00%.No non-permissible income detected in the financial statements. No purification is required based on available data.
About The Honest Company, Inc.
The Honest Company, Inc. a personal care company, provides personal care products for babies and adults. It offers wipes, personal care, diapers, and beauty products. In addition, it sells its products through retailers and websites, and third-party ecommerce sites. The Honest Company, Inc. was incorporated in 2011 and is headquartered in Los Angeles, California.
Frequently Asked Questions
Is The Honest Company, Inc. (HNST) stock halal to invest in?
According to AAOIFI Shariah screening standards, The Honest Company, Inc. (HNST) is currently classified as Not Halal (Non-Compliant). This is based on both business activity and financial ratio screening.
Does The Honest Company, Inc. have any interest income?
The Honest Company, Inc.'s interest income ratio is 38.3% of total revenue. AAOIFI standards require this to be below 30%.
What guidelines are used to determine if HNST stock is Shariah-compliant?
HNST is screened using AAOIFI Standard No. 21, which involves two checks: business activity screening (ensuring the company's core business is permissible in Islam) and financial ratio screening (checking debt, interest income, and cash ratios against defined thresholds). AAOIFI is the most widely recognized standard for Islamic finance.

