Is Abbott Stock Halal?
Table of Contents
Key Points
- After examining Abbott’s source of revenue, the ratio of interest expense to total operating expense, and ESG impact we are comfortable investing in Abbott from a Halal perspective.
Company Overview
Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States.
How much of Abbott Laboratories revenue comes from haram?
Abbott Laboratories revenue source is categorized into four segments. Established Pharmaceutical Products, Nutritionals, Diagnostics, and Medical Devices.
Practical Islamic finance concludes
None of Abbott laboratories, Revenue comes from anything inherently haram.
Does Abbott laboratories rely on interest to operate?
| Recent Quarter ended 3/31/2022 | Fiscal Year ended 12/31/2021 | Fiscal Year ended 12/31/2020 | |
| Interest Expense | 131 | 533 | 546 |
| Total Operating Expense | 3996 | 16,113 | 14,248 |
| Interest Expense / Total Operating Expense | 3.28% | 3.31% | 3.83% |
*Numbers in millions, of U.S. dollars
Practical Islamic finance concludes:
Riba is used but not relied upon in Abbott laboratories operations.
What is Abbott Laboratories Environmental, Social, and Governance (ESG) impact?
Environment
No notable environmental highlights.
Social
Abbott laboratories has a Glassdoor rating of 3.9 out of 5.0. Glassdoor is a trusted website where current and former employees can review and rate their companies.
Governance
In 2021, two of Abbott Laboratories’ subsidiaries, Arriva Medical LLC and Alere Inc, had to pay $160M to resolve claims that they had fraudulently billed Medicare for glucose monitors. Supposedly, Arriva used free glucose monitors to entice patients into placing more orders, then took kickbacks on the increased sales. The company was also accused of charging Medicare for glucose monitors given to ineligible patients, including patients that had expired.
These issues had happened before the acquisition by Abbott. No new allegations have come forth in the period Abbott has owned them
Practical Islamic finance concludes:
Abbott Laboratories has a net positive ESG impact.
Comfort Rating
From Abbott Laboratories business, financial, and ESG reviews, Practical Islamic Finance rates Abbott laboratories, stock as