Is Citrix Systems Stock Halal?
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 / Revenue | 0.04% | 0.10% | 0.61% |
| Interest Expense / Total Expense | 3.35% | 2.46% | 1.86% |
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: