Definitions Glossary

A qualitative check of what the company primarily does. If the primary business is clearly prohibited (e.g., interest-based finance, gambling), it typically fails regardless of ratios.

A quantitative check using balance sheet and income statement inputs (e.g., debt ratio, interest income ratio). Thresholds and definitions vary by methodology.

A simplified status signal. “Questionable” generally means ambiguity (missing data, unclear classification, borderline thresholds) and should be treated as “review required.”

The set of rules used to classify compliance (definitions, thresholds, and denominators). Different standards can disagree while each remains internally consistent.

Company value implied by the market: share price × shares outstanding. It can change daily, so ratios that use market cap can “drift” even without new filings.

The accounting total of assets on the balance sheet. It changes more slowly than market cap and updates on filing cadence.

The definition varies: some use total debt; others focus on interest-bearing debt only. Always check which definition is used.

Top-line sales/turnover. Some data sources use trailing twelve months (TTM); others use last annual report or quarterly statements.

Income derived from interest. Screening often uses an “interest income / revenue” style ratio; exact line items can vary by reporting standards.

Revenue from non-permissible sources (by the chosen methodology). This is often used for purification estimates; classification can be difficult for diversified businesses.

Asset composition measures used by some standards (e.g., cash and receivables thresholds). Data availability varies.

Your effective average entry price for a holding (per share), used to compute P&L.

Profit/loss based on current price vs cost basis, not yet realized by selling.

An educational estimate of impure income that may need to be donated/purified, based on available inputs and methodology. Interpretations vary; consult qualified guidance for personal decisions.

Database-level authorization policies that restrict rows a user can read/write (helps prevent cross-user leakage even if a UI bug exists).

A design principle: users and services should only have the minimum permissions needed to do their job.

Ensuring one user’s data is never accessible to another user (even accidentally).