Is Stryker Stock Halal?
Table of Contents
How much of Stryker’s revenue comes from haram?
Stryker earns its revenue from the following revenue sources:
- Orthopaedics:
Includes implants used in total joint replacements, such as hip, knee, and shoulder, and trauma and extremities surgeries.
- MedSurg:
Includes surgical equipment, patient and caregiver safety technologies to prevent hospital-acquired conditions, disposable medical products, and instruments used for computer-assisted surgeries.
- Neurotechnology and Spine:
Includes neurosurgical, neurovascular, and craniomaxillofacial products used in brain and open skull surgeries.
In addition, Stryker provides spinal implant devices used to treat spinal injuries, bone deformities, and degenerative conditions.
The contributions from each of Stryker’s revenue segments in their 2020 annual report were as follows:
Practical Islamic Finance concludes:
None of Stryker’s revenue comes from anything inherently haram.
Does Stryker rely on interest to operate?
Stryker reports its Interest Income & Expenses as a net value.
| Year to Date for the period ending March 31, 2021 | Fiscal year ended December 31, 2020 | Fiscal year ended December 31, 2019 | |
|---|---|---|---|
| Interest Income | – | – | – |
| Total Revenue | $3,953,000 | $14,351,000 | $14,884,000 |
| Interest Expense (net) | $92,000 | $269,000 | $151,000 |
| Total Expenses | $3,494,000 | $12,128,000 | $12,171,000 |
| Interest Income / Revenue | – | – | – |
| Interest Expense / Total Expense | 2.63% | 2.22% | 1.24% |
Practical Islamic Finance concludes:
Riba is used but not relied upon in Stryker’s operations.
What is Stryker’s Environmental, Social, and Governance (ESG) impact?
Environment
According to Stryker, ~ 15% of its electricity use in its manufacturing facilities is generated by renewable sources.
Social
According to Stryker, in 2020, the company donated thousands of Emergency Relief Beds to locations highly impacted by the COVID-19 pandemic.
In addition, Stryker has an impressively high Glassdoor rating of 4.2 out of 5.0 from over 3,800 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:
Stryker has a net positive ESG impact.
Comfort Rating
From Stryker’s business, financial, and ESG reviews, Practical Islamic Finance rates Stryker stock as: