Is Array Technologies (ARRY) Halal to invest in?
Table of Contents
How much of Array Technologies’ revenue comes from haram?
Array Technologies manufactures solar tracking systems designed to direct solar panels towards the sun and follow the sun’s path throughout the day to increase solar panel efficiency.
The company generates its revenue from selling its solar tracking systems and system components.
Practical Islamic Finance concludes:
None of Array Technologies’ revenue comes from anything inherently haram.
Does Array Technologies 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 | – | – | – |
| Total Revenue | $448,728 | $872,662 | $647,899 |
| Interest Expense | $15,660 | $15,129 | $18,797 |
| Total Expenses | $429,969 | $777,450 | $564,490 |
| Other Income (Net) / Revenue | – | – | – |
| Other Expense (Net) / Total Expense | 3.64% | 1.95% | 3.33% |
Practical Islamic Finance concludes:
Riba is used but not relied upon in Array Technologies’ operations.
What is Array Technologies’ Environmental, Social, and Governance (ESG) impact?
Environment
According to Array Technologies, its tracker technology can increase energy production by over 25% than traditional fixed-tilt arrays.
Social
Array Technologies has a Glassdoor rating of 3.6 out of 5.0 from over 28 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:
Array Technologies has a net positive ESG impact.
Comfort Rating
From Array Technologies’ business, financial, and ESG reviews, Practical Islamic Finance rates Array Technologies stock as:
Comfortable to invest in from a Halal perspective.
Sources
Array Technologies Q2 2021 10-Q