Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products. The stock trades as (NYSE (ADR): NVO). The company carries a market capitalisation of roughly $222.6 billion and sits in the Healthcare sector. For Muslim investors asking “is Novo Nordisk A/S halal?” or “is NVO halal?”, the answer comes from testing the company against established Shariah screening rules. Here are the workings.
What We Screen For
Our screen applies two layers. First, a business activity test: companies whose core operations are impermissible (conventional banking and insurance, alcohol, gambling, tobacco, weapons, adult entertainment) fail outright. Second, four financial ratio tests built on widely adopted AAOIFI-style thresholds:
- Debt screen: interest-bearing debt must stay below 33% of market capitalisation.
- Liquidity screen: cash plus interest-bearing securities must stay below 33% of market capitalisation.
- Receivables screen: accounts receivable must stay below 49% of total assets.
- Revenue screen: non-permissible revenue must stay below 5% of total revenue.
The Numbers
| Screening Test | NVO Figure | Limit | Status |
|---|---|---|---|
| Business activity | Core operations reviewed | No prohibited core activity | ✓ Pass |
| Interest-bearing debt to market capitalisation | 24.12% | Below 33% | ✓ Pass |
| Cash and interest-bearing securities | 4.87% | Below 33% | ✓ Pass |
| Accounts receivable to total assets | 1.08% | Below 49% | ✓ Pass |
| Non-permissible revenue share | 1.03% | Below 5% | ✓ Pass |
| Overall verdict | PASS | Ethical score 70.0/100 | ✓ Pass |
Detailed Assessment
Novo Nordisk A/S clears the business activity test: No prohibited business activity identified.
Interest-bearing debt stands at 24.12% of market capitalisation, below the 33% limit. A clean reading on the most-watched screen.
Cash and interest-bearing securities sit at 4.87% against the 33% limit, and accounts receivable at 1.08% against the 49% limit. Together these confirm the asset base is productive rather than a wrapper around cash and paper claims.
Non-permissible revenue is measured at 1.03% of total revenue against the 5% ceiling, a small residual (typically interest earned on cash balances) that purification is designed to address.
Key Considerations
A quantitative PASS is not a blanket endorsement. Some scholars apply additional qualitative overlays, and ratios move with every reporting period; a company near a threshold can cross it on the next filing. Where a small share of revenue is non-permissible, most methodologies require purification of the corresponding portion of any dividend received.
On valuation, the shares trade at $50.32, below our conservative fair value estimate of $55.65. Compliance and valuation are separate questions; a compliant stock can still be expensive.
Screening data reflects filings available as of 2026-07-19.
Quick Answers
Is Novo Nordisk A/S stock halal?
Under our screen, Novo Nordisk A/S (NVO) receives a PASS verdict as of July 2026. It passes the business activity test and all four financial ratio screens.
What ratios does NVO need to pass?
Interest-bearing debt below 33% of market capitalisation, cash and interest-bearing securities below 33%, receivables below 49% of assets, and non-permissible revenue below 5% of total revenue, after a business activity test.
Further Research
View the full Novo Nordisk A/S profile, including quantitative scores and technical analysis, on our NVO ticker page.
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