--- title: "Is The Coca-Cola Stock Halal?" canonical: https://www.halalwallet.ca/is-it-halal/the-coca-cola-stock publisher: HalalWallet license: CC BY 4.0 verdict: conditional verdict_label: Conditional entity_type: stock ticker: KO exchange: NYSE last_reviewed: 2026-06-14 data_as_of: 2026-04-03 standards_disagree: true --- # Is The Coca-Cola Stock Halal? **Verdict: Conditional** (Permissible with conditions) The Coca-Cola Company (KO) passes the screens we can compute (data as of 2026-04-03) — interest-bearing debt / market cap 12.2%, cash + interest-bearing securities / market cap 3.1%, impermissible income / total revenue 1.6% — but one screen requires case-by-case judgment. It is not held by Shariah-screened ETFs SPUS or HLAL. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence 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 Result: Pass 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 (AAOIFI) Data as of: 2026-04-03 | Screen | Value | Limit | Result | |---|---|---|---| | Interest-bearing debt / market cap | 12.2% | < 30% | Pass | | Cash + interest-bearing securities / market cap | 3.1% | < 30% | Pass | | Impermissible income / total revenue | 1.6% | < 5% | Pass | Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology ## How it screens across Shariah standards These standards disagree on this company — it passes some and fails others, which is why different apps can show different answers. The headline label follows AAOIFI (the strictest 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 threshold | 12.2% | 3.1% | < 33% of market cap | Pass | | MSCI Islamic / FTSE Yasaar basis | 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 < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen. ## 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' and screeners' positions - **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](https://www.sp-funds.com/spus/)) - **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](https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm)) ## Sources - KO latest quarterly filing (balance sheet 2026-04-03) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=The%20Coca-Cola%20Company&type=10-Q) - AAOIFI Shariah Standards (https://aaoifi.com) - Coca-Cola Q4/Full-Year 2025 results (company IR) (https://investors.coca-colacompany.com/news-events/press-releases/detail/1151/coca-cola-reports-fourth-quarter-and-full-year-2025-results) - Coca-Cola FY2025 10-K (company IR, SEC filing) (https://investors.coca-colacompany.com/filings-reports/all-sec-filings/content/0001628280-26-010047/ko-20251231.htm) - SPUS holdings (SP Funds) (https://www.sp-funds.com/spus/) - HLAL Schedule of Investments 2026-02-28 (SEC EDGAR) (https://www.sec.gov/Archives/edgar/data/1683471/000089418926012509/wahedshariah.htm) ## Frequently asked questions ### Is The Coca-Cola Company (KO) stock halal? The Coca-Cola Company is conditional under our screen — one or more lines need filing-level verification before treating it as clearly halal or not halal. ### Does The Coca-Cola Company pass the AAOIFI financial ratio screen? As of 2026-04-03: interest-bearing debt is 12.2% of market cap (limit < 30%); cash plus interest-bearing securities is 3.1% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page. ### Is The Coca-Cola Company held in halal ETFs like SPUS or HLAL? No — as of our last check, The Coca-Cola Company is not held by SPUS or HLAL. Absence can reflect a failed screen or index scope — verify current holdings before citing. ## Related verdicts - [Is Caterpillar Stock Halal?](https://www.halalwallet.ca/is-it-halal/caterpillar-stock.md) — Conditional - [Is CSX Stock Halal?](https://www.halalwallet.ca/is-it-halal/csx-stock.md) — Conditional - [Is Ecolab Stock Halal?](https://www.halalwallet.ca/is-it-halal/ecolab-stock.md) — Conditional - [Is Illinois Tool Works Stock Halal?](https://www.halalwallet.ca/is-it-halal/illinois-tool-works-stock.md) — Conditional - [Is McDonald's Stock Halal?](https://www.halalwallet.ca/is-it-halal/mcdonald-s-stock.md) — Conditional - [Is Otis Worldwide Stock Halal?](https://www.halalwallet.ca/is-it-halal/otis-worldwide-stock.md) — Conditional --- Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30). - Full canonical answer feed (JSON): https://www.halalwallet.ca/api/llm-feed.json - Site guide for AI systems: https://www.halalwallet.ca/llms.txt - Markdown mirror directory: https://www.halalwallet.ca/index.md