Is ASML Holding Stock Halal?
Table of Contents
How much of ASML Holding’s revenue comes from haram?
ASML develops and manufactures photolithography systems for memory and logic chipmakers and provides software and services that expedite microchip production.
Practical Islamic Finance concludes:
None of ASML Holding’s revenue comes from anything inherently haram.
Does ASML Holding rely on interest to operate?
| Year-to-Date for period ended 7/4/2021 | Fiscal year ended 12/31/2020 | Fiscal year ended 12/31/2019 | |
|---|---|---|---|
| Interest Income | – | 8,400 | 11,600 |
| Total Revenue | 8,384,100 | 13,978,500 | 11,820,000 |
| Interest Expense | 21,900 (net) | 43,400 | 36,600 |
| Total Expenses | 5,584,500 | 9,927,000 | 9,029,200 |
| Interest Income / Revenue | – | 0.06% | 0.88% |
| Interest Expense / Total Expense | 0.39% | 0.44% | 0.80% |
Practical Islamic Finance concludes:
Riba is used but not relied upon in ASML Holding’s operations.
What is ASML Holding’s Environmental, Social, and Governance (ESG) impact?
Environment
In 2020, ASML reached 100% renewable energy use across its operations.
In addition, ASML signed a 10-year power purchase agreement with RWE in 2021 for more than 250 gigawatt-hours of renewable power per year.
Social
ASML has a high Glassdoor rating of 4.2 out of 5.0 from over 1,000 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:
ASML Holding has a net positive ESG impact.
Comfort Rating
From ASML Holding’s business, financial, and ESG reviews, Practical Islamic Finance rates ASML Holding stock as:
Comfortable to invest in from a Halal perspective.
Sources
ASML Holding 2020 Annual Report
ASML signs 10-year green power purchase agreement with RWE