Is Whirlpool Stock Halal?
Table of Contents
Key Points
- After examining Whirlpool’s source of revenue, the ratio of interest expense to total operating expense, and ESG impact we are uncomfortable investing in Whirlpool from a Halal perspective.
Company Overview
The Whirlpool Corporation is an American multinational manufacturer and marketer of home appliances, headquartered in Benton Charter Township, Michigan, United States.
How much of Whirlpool Corporation’s revenue comes from haram?
Whirlpool Corporations’ source of revenue is categorized into seven segments. Refrigeration, Cooking, Dishwashing, Laundry, Spare parts & warranties, and Others.
Practical Islamic finance concludes
None of Whirlpool Corporations Revenue comes from anything inherently haram.
Does Whirlpool Corporation 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 | 41 | 175 | 189 |
| Total Operating Expense | 390 | 2,166 | 2,234 |
| Interest Expense / Total Operating Expense | 10.51% | 8.08% | 8.46% |
*Numbers in Millions, of U.S. dollars
Practical Islamic finance concludes:
There appears to be a persistent reliance on the use of Riba in Whirlpool Corporation’s operations.
What is Whirlpool’s Environmental, Social, and Governance (ESG) impact?
Environment
In 2021, Whirlpool announced a global commitment to reach a net-zero emissions target in its plants and operations (Scopes 1 and 2) by 2030, which will cover more than 30 of Whirlpool Corporation’s manufacturing sites and its large distribution centers around the world.
Social
Whirlpool has a Glassdoor rating of 4.0 out of 5.0. Glassdoor is a trusted website where current and former employees can review and rate their companies.
Whirlpool Corporation has achieved a perfect CEI (Corporate Equality Index) score for 18 consecutive years, the longest of any major appliance company. As of December 31, 2021, Whirlpool has approximately 69,000 employees across 49 countries, with 30 percent located within the United States.
Governance
No notable governance highlights.
Practical Islamic finance concludes:
Whirlpool Corporation has a net positive ESG impact.
Comfort Rating
From Whirlpool Corporation business, financial, and ESG reviews, Practical Islamic Finance rates Whirlpool Corporation stock as
Uncomfortable to invest in from a Halal perspective.
Justification
There is a persistent and material reliance on interest-bearing debt in Whirlpool’s operations.
Sources