Netflix, Inc. (NFLX) - Questionable
Netflix, Inc. (NFLX) 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
- Communication Services
- Industry
- Entertainment
- Result
- Doubtful
- Reason
- This company requires further review: the industry "Entertainment" has mixed revenue streams that require further analysis. The sector "Communication Services" is not categorically excluded, but deeper analysis is recommended.
Financial Ratios
- Debt Ratio
- Value: 3.7% | Threshold: 30% | Result: Pass
- Cash & Interest-bearing Securities Ratio
- Value: 2.3% | Threshold: 30% | Result: Pass
- Non-Permissible Income Ratio
- Value: 0.4% | Threshold: 5% | Result: Pass
Dividend Purification
Purification percentage: 0.38%.Based on the company's financial statements, approximately 0.38% 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 (0.38% of total income). Some scholars may differ on the exact calculation method.
About Netflix, Inc.
Netflix, Inc. provides entertainment services worldwide. The company offers television (TV) series, documentaries, feature films, games, and live programming across various genres and languages. It also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices. Netflix, Inc. was incorporated in 1997 and is headquartered in Los Gatos, California.
Frequently Asked Questions
Is Netflix, Inc. (NFLX) stock halal to invest in?
According to AAOIFI Shariah screening standards, Netflix, Inc. (NFLX) is currently classified as Questionable. This is based on both business activity and financial ratio screening.
Does Netflix, Inc. have any interest income?
Identified interest income is 0.4% of Netflix, Inc.'s total income. AAOIFI standards require non-permissible income to be below 5%.


