Is UPS Stock Halal?
Key Points
- After examining UPS’s source of revenue, the ratio of interest expense to total operating expense, and ESG impact we are comfortable investing in UPS from a Halal perspective.
Company Overview
United Parcel Service is an American multinational shipping & receiving and supply chain management company founded in 1907. Originally known as the American Messenger Company specializing in telegraphs, UPS has grown to become a Fortune 500 company and one of the world’s largest shipping couriers.
How much of UPS, Inc.’s revenue comes from haram?
The revenue source of UPS is divided into three segments. U.S Domestic Package, International Package, and Supply Chain Solutions.
Practical Islamic finance concludes
None of UPS, Inc.’s. Revenue comes from anything inherently haram.
Does UPS, Inc. 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 | 174 | 694 | 701 |
| Total Operating Expense | 21,127 | 84,477 | 76,944 |
| Interest Expense / Total Operating Expense | 0.82% | 0.82% | 0.91% |
*Numbers in millions, of U.S. dollars
Practical Islamic finance concludes:
Riba is used but not relied upon in UPS, Inc.’s operations.
What is UPS, Inc.’s Environmental, Social, and Governance (ESG) impact?
Environment
Over the past decade, UPS invested more than $1 billion in alternative fuel and advanced technology vehicles and fueling stations. Future plans include the deployment of 10,000 all-electric Arrival delivery vehicles in North America and Europe.UPS plans to achieve net-zero carbon emission by 2050.
Social
UPS, Inc. has a Glassdoor rating of 3.5 out of 5.0. Glassdoor is a trusted website where current and former employees can review and rate their companies.
Governance
No notable governance highlights.
Practical Islamic finance concludes:
UPS, Inc. has a net positive ESG impact.
Comfort Rating
From UPS, Inc. business, financial, and ESG reviews, Practical Islamic Finance rates UPS, Inc. stock as