How much of Intuitive Surgical’s revenue comes from haram?

Intuitive Surgical is a robotic surgical device developer who manufactures the Da Vinci Surgical System.

Intuitive Surgical earns its revenue from the following revenue sources:

  • Product Sales:

Includes revenue generated from sales of the company’s Da Vinci Surgical System and its compatible instruments which allow surgeons to operate remotely with machine precision. 

  • Service Revenue:

Includes revenue generated from the company’s field engineering services and system training programs provided to surgeons, surgical assistants, and operating room nurses. This includes 24/7 support, installation, repair, and maintenance, provided through time and material programs and service contracts.

The contributions from each of Intuitive’s revenue segments in their 2020 annual report were as follows:

Practical Islamic Finance concludes:

None of Intuitive Surgical’s revenue comes from anything inherently haram.

Does Intuitive Surgical rely on interest to operate?

Year-to-Date
for period ended
6/30/2021
Fiscal year
ended
3/31/2021
Fiscal year
ended
3/31/2020
Interest Income (Net) $47,000
$157,200$127,700
Total Revenue$2,756,100$4,358,400$4,478,500
Interest Expense (Net)
Total Expenses$1,828,100$3,308,600$3,104,000
Interest Income / Revenue1.71%3.61%2.85%
Interest Expense / Total Expense
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes: 

Riba is used but not relied upon in Intuitive Surgical’s operations.

What is Intuitive Surgical’s Environmental, Social, and Governance (ESG) impact?

Environment

Intuitive has set out to improve its sustainability by adding 294 EV charging ports across its facilities, reduced its greenhouse gas emissions by over 1.1 million pounds, collected and recycled over 800,000 pounds of waste, and saved over 130,000 gallons of water in 2020.

Social

Intuitive Surgical has an impressively high Glassdoor rating of 4.5 out of 5.0 from over 750 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights

Practical Islamic Finance concludes:

Intuitive Surgical has a net positive ESG impact.

Comfort Rating

From Intuitive Surgical’s business, financial, and ESG reviews, Practical Islamic Finance rates Intuitive Surgical stock as: 

Comfortable to invest in from a halal perspective.

Sources

Intuitive 2020 10-K

Intuitive Q2 2021 10-Q

Intuitive Sustainability