How much of Citrix Systems’ revenue comes from haram?

Citrix Systems is a cloud computing and software company specialized in desktop virtualization that provides digital workspace, app delivery, and security solutions.

Citrix earns its revenue from the following revenue sources:

  • Subscriptions:

Includes revenue generated from the sale and renewal of subscriptions to Citrix’s virtual machine software and cloud services.

  • Product and License:

Includes revenue generated from fees related to perpetual licensing of the company’s software products. 

  • Support and Services:

Includes revenue generated from fees related to hardware maintenance, software support, consulting services (primarily related to the implementation of the Company’s products), and product training.

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

Practical Islamic Finance concludes:

None of Citrix Systems’ revenue comes from anything inherently haram.

Does Citrix Systems rely on interest to operate?

Year-to-Date
for period ended
6/30/2021
Fiscal year
ended
12/31/2020
Fiscal year
ended
12/31/2019
Interest Income (Net) $593$3,108$18,280
Total Revenue$1,587,877$3,236,700$3,010,564
Interest Expense (Net)$47,265$64,687$45,974
Total Expenses$1,410,867$2,627,892$2,474,446
Interest Income / Revenue0.04%0.10%0.61%
Interest Expense / Total Expense3.35%2.46%1.86%
*Numbers in thousands, U.S. dollars

Practical Islamic Finance concludes:

Riba is used but not relied upon in Citrix Systems’s operations.

What is Citrix Systems’ Environmental, Social, and Governance (ESG) impact?

Environment

According to Citrix’s 2019 Sustainability Report, 75% of the company’s electricity usage is generated by renewable sources. 

In addition, 90% of Citrix’s energy usage in its India operations comes from renewable energy sources.

Social

Citrix Systems has a high Glassdoor rating of 4.1 out of 5.0 from over 3,500 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:

Citrix Systems has a net positive ESG impact.

Comfort Rating

From Citrix Systems’ business, financial, and ESG reviews, Practical Islamic Finance rates Citrix Systems stock as:

Comfortable to invest in from a Halal perspective.

Sources

Citrix Systems 2020 10-K

Citrix Systems Q2 2021 10-Q

Citrix 2019 Sustainability Report 

Citrix Reviews