Annotated balance sheet · halal screening

Activision Blizzard, Inc.

The full balance sheet for ATVI, with the line items that feed each halal check marked and explained inline. Read it like a financial report that grades itself.

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Annotated balance sheet · halal screening

Activision Blizzard, Inc. — Q2 2023

Source: SEC Form 10-Q filed 2023-06-30 · via FMP · USD millions · Open filing

Assets

Current Assets

Cash & cash equivalents①

$10,770

Marketable securities①

$2,314

Accounts receivable

$1,035

Inventories

Other current assets

$1,377

Total current assets

$15,496

Non-current Assets

Property, plant & equipment, net②tangible

$204

Operating lease right-of-use assets②tangible

Long-term marketable securities①

Goodwill

$9,929

Intangible assets, net

$1,121

Other non-current assets

$479

Total non-current assets

$11,733

TOTAL ASSETS

$28,518

CHECK ①

Cash + Securities Ratio

under AAOIFI

17.6%

✓ PASS

Threshold≤ 30%Buffer12.4 percentage points to spare

Breach risk

Comfortable

0%← Pass zone | Fail zone →45%

Caps how much of a company's value can be held in interest-bearing financial assets — too much suggests the business is more about earning interest than producing real goods/services.

SourceAAOIFI Shariah Standard No. 21 (Financial Papers — Shares and Bonds), §3.5.1

Liabilities

Current Liabilities

Accounts payable

$225

Other current liabilities

$1,220

Deferred revenue

$1,877

Commercial paper③interest-bearing

Short-term debt③interest-bearing

Total current liabilities

$3,322

Non-current Liabilities

Long-term debt③interest-bearing

$3,612

Other non-current liabilities

$759

Total non-current liabilities

$4,371

TOTAL LIABILITIES

$7,725

CHECK ③

Interest-bearing Debt Ratio

under AAOIFI

4.9%

✓ PASS

Threshold≤ 30%Buffer25.1 percentage points to spare

Breach risk

Comfortable

0%← Pass zone | Fail zone →45%

Caps how much of a company's value comes from interest-bearing loans. Companies that rely heavily on riba (interest-based debt) fail this check even if their business itself is permissible.

SourceAAOIFI Shariah Standard No. 21 (Financial Papers — Shares and Bonds), §3.4.2

Income Statement Excerpt (trailing 12 months)

Total revenue

$8,706

Of which:

Product & services revenue

$8,706

Interest income④non-permissible

$324

CHECK ④

Non-permissible Income Ratio

under AAOIFI

3.7%

✓ PASS

Threshold≤ 5%Buffer1.3 percentage points to spare

Breach risk

Comfortable

0%← Pass zone | Fail zone →8%

Caps what fraction of company revenue can come from non-permissible sources. If your stock passes but interest income is high, you'd 'purify' your share of that income through charity.

SourceAAOIFI Shariah Standard No. 21 (Financial Papers — Shares and Bonds), §3.6

Final verdict — under AAOIFI Standard

Not halal

Sector check passes: ✗ no

Want to verify against the primary document? Open full SEC filing

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