Is The Coca-Cola Stock Halal?
The Coca-Cola Company · KO · NYSE
The Coca-Cola Company (KO) passes our computed AAOIFI financial-ratio screen (data as of 2026-04-03) — interest-bearing debt 12.2% and cash plus interest-bearing securities 3.1% of market cap, both under the 30% limits — but both major U.S. Shariah-screened ETFs (SPUS and HLAL) exclude it from their holdings as of June 2026, which typically signals a business-activity concern that automated ratio screens cannot see. We report it as conditional until the segment revenue in the latest annual filing is verified.
Financial data as of 2026-04-03 · Screening basis: AAOIFI · Last reviewed 2026-06-14
Our Analysis
Coca-Cola is a nonalcoholic-beverage business, and on the surface that is a clean profile for Shariah screening: its fiscal 2025 net operating revenues of $47.9 billion come from selling concentrates and finished soft drinks, juices, water, and coffee across five geographic operating segments. There is no large prohibited-industry revenue line in the core business, so for most screeners the question turns to financial ratios such as leverage and the share of interest-bearing investment income.
The nuance a careful Muslim investor should know is that Coca-Cola has pushed into alcohol ready-to-drink products through licensing and joint ventures, including Topo Chico Hard Seltzer, the Jack Daniel's & Coca-Cola canned cocktail with Brown-Forman, and Simply Spiked. The company does not break out the revenue from these alcoholic products, so their share cannot be measured from the filings; it appears small relative to the total, which is the range where some scholars permit holding the stock with purification of the corresponding portion of dividends.
An honest data point is that Coca-Cola is in the S&P 500 but is not held by SPUS as of June 11, 2026, even though its close peer PepsiCo is. SPUS does not disclose stock-level reasons, so it cannot be said whether the exclusion is driven by the alcohol RTD activity, a financial-ratio threshold, or index mechanics. Coca-Cola is also absent from HLAL, which tracks the FTSE USA Shariah index. Investors should treat the screen status as methodology-dependent and confirm it in a live screener before acting.
Business Activity Screen
The Coca-Cola Company is the world's largest nonalcoholic beverage company, selling concentrates, syrups, and finished sparkling and still beverages. Per its fiscal 2025 results (year ended December 31, 2025; 10-K filed February 20, 2026), consolidated net operating revenues were $47,941 million, reported across operating segments: North America $19,586M, EMEA $11,513M, Latin America $6,334M, Asia Pacific $5,638M, and Bottling Investments $5,735M (Corporate $144M, eliminations $(1,009)M).
Coca-Cola's core business is nonalcoholic beverages, a permissible activity. The Shariah-relevant nuance is the company's expansion into alcohol ready-to-drink products through licensing and joint ventures (for example Topo Chico Hard Seltzer, Jack Daniel's & Coca-Cola in partnership with Brown-Forman, and Simply Spiked); the revenue from these alcoholic offerings is not separately disclosed in the company's segment reporting, so its size cannot be quantified from filings. Coca-Cola also earns interest and investment income on its cash and equity-method bottling investments, reported outside operating revenue and not separately verified here. Notably, although Coca-Cola is an S&P 500 constituent, it is absent from the SPUS holdings as of 2026-06-11 while peer PepsiCo is included; SPUS does not publish the reason, so it cannot be stated whether the exclusion reflects the alcohol RTD activity, a financial-ratio screen, or other criteria.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 12.2% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 3.1% | < 30% | Pass |
| Impermissible income / total revenueInterest income only — verify other impermissible revenue lines in the 10-K | 1.6% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-04-03 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How The Coca-Cola screens across Shariah standards
The standards disagree on this company. It passes some Shariah screens and fails others — which is exactly why you may see a different answer in different apps. Our headline verdict uses AAOIFI, the strictest and most widely cited mainstream standard.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 12.2% | 3.1% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 12.2% | 3.1% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 42.1% | 10.6% | < 33.33% of total assets | Fail |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-04-03) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Other stocks where Shariah screeners disagree
These companies pass under some mainstream standards and fail under others — the same pattern as this verdict. That is why two apps can show different answers.
AbbVieABBV
Passes market-cap screens · fails MSCI/FTSE (total assets)
AirbnbABNB
Passes market-cap screens · fails MSCI/FTSE (total assets)
Arista NetworksANET
Passes market-cap screens · fails MSCI/FTSE (total assets)
ArmARM
Passes market-cap screens · fails MSCI/FTSE (total assets)
BlockXYZ
Fails AAOIFI market-cap · passes MSCI/FTSE (total assets)
BroadcomAVGO
Passes market-cap screens · fails MSCI/FTSE (total assets)
Conditions
Our computed AAOIFI financial-ratio screen passes on the latest filing data, but both major U.S. Shariah-screened ETFs — SPUS (S&P Shariah methodology) and HLAL (FTSE Shariah methodology) — exclude The Coca-Cola Company from their holdings as of our June 2026 check, even though it is in their parent indices. Professional screens apply filing-level business-activity analysis (alcohol, pork, tobacco, or media revenue share) and different ratio bases that an automated ratio screen cannot replicate. That divergence usually signals an impermissible-revenue question. Treat this as unresolved until the segment revenue in the latest annual filing is verified line by line.
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
SP Funds S&P 500 Sharia ETF (SPUS)
Not held in SPUS as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →Wahed FTSE USA Shariah ETF (HLAL)
Not held in HLAL as of 2026-06-11. Absence can reflect screen failure or index scope — verify before citing as a screen outcome.
Source →
What to do instead
You don't have to choose between investing and your values — screened alternatives exist for nearly every position.
Related guides
Consider Consulting an Islamic Scholar
Major whether The Coca-Cola Company is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
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