NYSE Shariah screener · October 2026

Is AutoZone, Inc. (AZO) Halal?

PASS

AutoZone, Inc. · NYSE: AZO · Consumer Discretionary

The short answer

Yes -- AutoZone, Inc. (AZO) passes this Shariah stock screen on all three gates. Per its own FY2025 10-K, its core business is retailing and distributing automotive replacement parts and accessories across the Americas (7,657 stores), with no haram segments; its commercial program extends only short-term trade credit to repair shops, not conventional lending. Its separately disclosed interest income of $10.972M is about 0.06% of its $18,938.7M in net sales, below the 5% ceiling. Its interest-bearing debt of about $12.58B (long-term debt $8,799,775k plus total lease liabilities $3,777,440k) is about 26.82% of its ~$46.89B market cap ($2,819.03, latest close retrieved October 2, 2026), below the ~33% ceiling. Third-party coverage agrees: Zoya rates AZO Shariah-compliant and Musaffa classifies it halal (October 2026); no ShariaPortfolio coverage was found -- honestly reported, not invented.

Gate 1 — Business activity: PASS

AutoZone, Inc. (NYSE: AZO), based in Memphis, Tennessee, describes itself in its FY2025 10-K as a leading retailer and distributor of automotive replacement parts and accessories in the Americas. It began operations in 1979; at August 30, 2025 it operated 6,627 stores in the U.S., 883 in Mexico and 147 in Brazil, selling new and remanufactured automotive hard parts, maintenance items, accessories and nonautomotive products, with a commercial program delivering parts to repair garages, dealers, service stations and fleet owners (trade credit on short daily, weekly or monthly terms, not conventional lending). It also sells ALLDATA automotive diagnostic and repair software and states it does not derive revenue from automotive repair or installation services. Business screen (factual, from the filing): no conventional banking/lending/insurance, alcohol, gambling, pork, tobacco or weapons segments. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

Per AutoZone's FY2025 10-K (fiscal year ended August 30, 2025), long-term debt was $8,799,775k (senior notes plus $748.6M of commercial paper classified long-term, as the company has the ability and intent to refinance) and total lease liabilities were $3,777,440k (operating $3,377,500k plus finance $399,940k, per Note D) -- interest-bearing debt of about $12.58B in total. Against a market cap of about $46.89B ($2,819.03 latest close retrieved October 2, 2026; 16,632,663 shares outstanding per the 10-K cover), debt divided by market cap is about 26.82%, below the ~33% ceiling. Cash and cash equivalents of $271.8M are about 0.58% of market cap. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: PASS

Note J of AutoZone's FY2025 10-K separately discloses interest income of $10,972k against net sales of $18,938,717k -- about 0.06% of revenue, far below the 5% non-compliant income ceiling. The income statement shows the offsetting 'Interest expense, net' line of $475,824k; the gross interest income is separately stated in the notes, so the ratio is directly verifiable. Gate 3 passes. Facts only.

Key figures used

Business: AutoZone, Inc. (Memphis, Tennessee); leading retailer and distributor of automotive replacement parts and accessories in the Americas since 1979 -- 6,627 U.S., 883 Mexico, 147 Brazil stores at Aug 30, 2025; ALLDATA diagnostic software; no repair/installation revenue; no haram segments
Gate 1: auto parts retailing is a permissible business activity under the AAOIFI-style business screen -- commercial credit to repair shops is short-term trade credit, not conventional lending
Debt: $8,799,775k long-term debt + $3,777,440k total lease liabilities (Note D) = $12,577.2M -- debt / market cap = 26.82% of ~$46.89B, under the ~33% ceiling
Cash: $271.8M cash and equivalents = 0.58% of market cap; no separate short-term investments line on the balance sheet
Interest income: $10,972k (Note J, FY2025) vs net sales $18,938,717k -- = 0.06% of revenue, under the 5% ceiling
Market cap: $2,819.03 (latest close, retrieved Oct 2, 2026) x 16,632,663 shares outstanding (FY2025 10-K cover) = ~$46.89B
Zoya: Shariah-compliant (assessment date blank, Oct 2026); Musaffa: halal (Oct 2026, AAOIFI); ShariaPortfolio: no coverage found
Result: PASS -- all three gates pass

Frequently asked questions

What does AutoZone do?

AutoZone, Inc. (NYSE: AZO), based in Memphis, Tennessee, describes itself in its FY2025 10-K as a leading retailer and distributor of automotive replacement parts and accessories in the Americas. It began operations in 1979 and at August 30, 2025 operated 6,627 stores in the U.S., 883 in Mexico and 147 in Brazil, selling new and remanufactured automotive hard parts, maintenance items, accessories and nonautomotive products, plus a commercial sales program delivering parts to repair garages, dealers, service stations and fleet owners. It also sells ALLDATA automotive diagnostic and repair software. It states it does not derive revenue from automotive repair or installation services, and its product lines include no conventional lending, insurance, alcohol, gambling, pork, tobacco or weapons.

Why does AutoZone pass this Shariah stock screen?

AutoZone passes all three gates of this screen. Gate 1 passes: per its own FY2025 10-K, its core business is retailing automotive replacement parts and accessories -- a halal business activity with no haram segments (the commercial program extends trade credit to repair shops on short daily, weekly or monthly terms, not consumer or conventional lending). Gate 2 passes: interest-bearing debt of about $12.58B (long-term debt $8,799,775k plus total lease liabilities $3,777,440k per Note D) is about 26.82% of its ~$46.89B market cap, below the ~33% ceiling. Gate 3 passes: separately disclosed interest income of $10.972M (Note J) is about 0.06% of $18,938.7M in net sales, far below the 5% ceiling. This is a factual screen, not a religious ruling -- consult a qualified scholar for personal rulings.

What is AutoZone's interest-bearing debt ratio?

Per AutoZone's FY2025 10-K (fiscal year ended August 30, 2025), long-term debt was $8,799,775k (senior notes plus $748.6M of commercial paper classified as long-term, since the company has the ability and intent to refinance it) and total lease liabilities were $3,777,440k (operating $3,377,500k plus finance $399,940k, per Note D) -- interest-bearing debt of about $12.58B in total. Against a market cap of about $46.89B ($2,819.03 latest close retrieved October 2, 2026; 16,632,663 shares outstanding per the 10-K cover), debt divided by market cap is about 26.82% -- below the ~33% ceiling. Cash and cash equivalents of $271.8M are about 0.58% of market cap; the filing states no separate short-term investments line on the balance sheet.

What is AutoZone's non-compliant income ratio?

Note J of AutoZone's FY2025 10-K separately discloses interest income of $10,972k (against net sales of $18,938,717k) -- about 0.06% of revenue, far below the 5% non-compliant income ceiling. The income statement shows only the offsetting 'Interest expense, net' line of $475,824k; the gross interest income figure is separately disclosed in the notes, so the ratio is directly verifiable. Gate 3 passes.

Do Zoya, Musaffa, or ShariaPortfolio cover AutoZone?

Zoya covers AZO and states it is Shariah-compliant (its page's displayed assessment date was blank when accessed in October 2026). Musaffa covers AZO and classifies it as halal as of October 2026 under its AAOIFI methodology (musaffa.com/stock/AZO/). No ShariaPortfolio (spscreener.mxcorporate.com) coverage of AZO was found. Both found coverage positions are consistent with this page's own PASS outcome. This page applies the screen directly from AutoZone's own filings and reports these positions honestly.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).