NIO
Quality Rating
NIO Inc., a pioneer in premium electric vehicles, demonstrates permissible core business activities aligned with Islamic principles of innovation and sustainability. However, its financial structure, characterized by exceptionally high debt and liquidity ratios relative to market capitalization, results in non-compliance across all major Shariah screening standards. Despite low non-compliant income, the company is excluded from key Islamic indices, classifying it as non-compliant overall. Investors may consider purification for minor interest income, but structural financial reforms are needed for future compliance. The compliance quality rating of B reflects strong business permissibility offset by critical financial concerns.
Purification Required
Minimal purification needed for dividend income
Index Inclusion
Excluded from all major Shariah indices: S&P Dow Jones, MSCI, FTSE, and DJIM.
Key Compliance Considerations
- Debt Ratio: 264.92% (threshold: 30%)
- Liquidity Ratio: 172.13% (threshold: 30%)
Debt Ratio
264.9%
Liquidity Ratio
172.1%
Interest Income Ratio
0.0%
Purification
0.84%