Screening Methodology
Data sources, in order of trust
- SEC EDGAR company facts (us-gaap XBRL) — balance sheet and income statement values, preferring the most recent 10-K. Every value in a response carries its XBRL tag, form, period, accession number, and a link to the filing.
- Market data — market capitalization and
industry/sector classification, labeled
source: market_data. - Disclosed estimates — where filings do not break out a figure (e.g. alcohol share of restaurant sales), we apply an industry-level estimate and say so in the response notes.
The four methodologies
Each company is checked independently against the published thresholds of AAOIFI, the Dow Jones Islamic Market index, MSCI Islamic, and the S&P Shariah index: debt, cash & interest-bearing securities, and receivables ratios (each against that methodology's denominator), plus a 5% ceiling on non-permissible revenue. The response shows every check: value, threshold, pass/fail.
The 0–100 score
Six components: business activity (25), interest income (25), debt (20), cash & securities (10), receivables (5), and cross-methodology agreement (15). A verdict of compliant requires a score of 65+ and methodology support — a verdict never contradicts all four methodologies.
Hard rules
- Primary haram products (alcohol, tobacco, gambling, adult content) → non-compliant regardless of financials.
- Interest income ≥ 20% of revenue → non-compliant.
- Financial-sector companies failing all four methodologies → non-compliant.
- Missing data → not screenable. Never assumed compliant.
- Missing market cap → market-cap ratios treated as failing (fail-safe), asset-based checks still computed.
Non-permissible revenue
Interest income (from filings) plus an industry-level estimate for categories with known haram revenue share (restaurants ~4% alcohol, hotels ~8%, supermarkets ~3%, etc.). The purification percentage equals this combined share — the portion of dividends and gains to donate.
ETFs
Screened by look-through of publicly disclosed top holdings, weighted by fund weight. Coverage is disclosed on every response; below 45% coverage we cap the verdict at questionable. More than 5% of screened weight in non-compliant holdings fails the fund.
Known approximations
- DJIM and S&P specify trailing-average market-cap denominators; we use point-in-time market cap.
- Bank XBRL interest tags can understate interest income — hence the financial-sector methodology rule above.
- US-listed securities only; international filings have no free auditable EDGAR equivalent yet.
Disagree with a threshold or an estimate? Email daleel@o11r.com — the methodology is versioned precisely so it can improve in public.