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Debt/Equity Ratio
This measures the amount of debt a company has relative to the 12-month average market capitalization. A company that has too high borrowing, that is, a high debt/equity ratio, may not be regarded as permissible for Islamic investment purposes.


Islamic term for Jurisprudence.

Anything that is permitted from an Islamic point-of-view.

Anything that is forbidden from an Islamic point-of-view. For example: alcohol.

Interest/Income Ratio
The proportion of income earned from lending. This ratio is calculated by dividing total interest over total income. If a company has an interest/income ratio that is too high, the company is not Islamically compliant.

Islamic Mutual Fund
Similar to a normal Mutual Fund, except, all the stocks and instruments in the Fund are compliant with Islamic principles.

The holy book of Moslems.

Liquidity Ratio
The proportion of cash and/or cash equivalents that the company holds in relation to its total assets. This ratio is calculated by dividing cash & cash equivalents over total assets. If a company has a liquidity ratio that is too high, the company is not Islamically compliant.

Non-Completion Rating
If a company is not able to provide sufficient information to our information gathering personnel, we will enter a non-completion rating in our database. Whilst this does not stop Moslems from investing in companies with such ratings, companies that do not have a non-completion rating, will find it easier to attract Moslem investors.

Proxy Voting
Moslems are obliged to be active shareholders and must voice their opinions regarding the running of companies and exercise their rights to vote at company AGMs.

Purification Process
As an interim measure Moslem investors are allowed to invest in companies that are involved in non-permissible activities in a non-significant way. If Moslem investors hold investments in such companies, they are required to donate a proportion of their profits to charity in order to cleanse their investment from an Islamic point of view.

Restricted Stocks
Companies that are not compliant with Islamic Principles are placed on a restricted list. Such companies may not pass specific Islamic investment filters. (See 'About Islamic Investments').

RI Stock Ratings Service
This allows Moslem investors from all over the world to check whether a stock is compliant for Islamic investment purposes.

Screening Process
The process though which each stock has to pass, on a regular basis, to check whether it is compliant with Islamic principles.

Islamic term for Law.

Shari'a Committee
A carefully selected group of respected Islamic scholars who provide Islamic expertise. The advice and guidance given by Shari'a committees affects the daily activities of Moslems. Therefore, Shari'a committees are very influential. Indeed, the Rating Intelligence Shari'a committee forms an integral part of the Ratings Intelligence organisation.

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