- Business
Project Based vs Equity Based Financing
In project financing, two common methods are Project Based Financing and Equity Based Financing. These methods differ significantly in how funds are allocated and risks are managed. This article explores both financing methods, focusing on their application within Islamic finance principles, and highlights their advantages and disadvantages. Project Based Financing: Focus on Specific Projects Project Based Financing is a method…
Read More » - Business
Activity Ratios: Know How Your Business Performs
Activity ratios are important indicators used to measure a company’s operational efficiency in utilizing its assets to generate revenue. By understanding various types of activity ratios, businesses can assess how effectively they are using their resources, such as inventory, receivables, and fixed assets. This article will discuss several key activity ratios, along with examples, to provide a clearer understanding of…
Read More » - Business
Solvency Ratios: Can Your Business Pay Off Future Debts?
Solvency ratios are vital indicators of a company’s long-term financial health. They provide insight into a business’s ability to meet its long-term debt obligations without jeopardizing its operational viability or shareholders’ equity. While businesses may face periods of financial strain, maintaining strong solvency ratios can significantly reduce financial risk and enhance creditworthiness, making it easier for companies to attract investors…
Read More » - Business
Liquidity Ratio: Can Your Business Pay Short-Term Debt?
Liquidity ratio is a crucial financial analysis tool used to assess a company’s ability to meet its short-term liabilities. By examining liquidity ratios, stakeholders can evaluate whether a company has enough liquid assets to cover its short-term debt obligations, thereby ensuring the financial health of the company. A strong liquidity position implies that a business is well-positioned to manage its…
Read More » - Blog
The Balance in Spending Wealth: Guidance from Surah Al-Furqan Verse 67
Surah Al-Furqan verse 67 provides essential guidance for Muslims on how to manage their wealth wisely. Allah subhanahu wa ta’ala says: “وَالَّذِينَ إِذَا أَنفَقُوا۟ لَمْ يُسْرِفُوا۟ وَلَمْ يَقْتُرُوا۟ وَكَانَ بَيْنَ ذَٰلِكَ قَوَامًا”(“And those who, when they spend, do so not excessively or sparingly but hold a middle way between those extremes.”)— (Surah Al-Furqan: 67). This verse emphasizes the importance of…
Read More » - Business
How to Maximize Work to Gain Rewards
In Islam, work is not only about earning a livelihood but can also be a source of immense spiritual reward when carried out with the right intention and practices. Here are several steps to transform your work into a form of worship: 1. Set the Right Intention (Niyyah) One of the key aspects of Islamic teachings is that actions are…
Read More » - Muslim Lifestyle
How to Maximize Worship as an Office Employee
In Islam, working can be considered a form of worship when done with the right intentions and ethical conduct. For office employees who are often busy with their jobs, it’s still possible to optimize worship. Here are some tips to balance work and worship effectively: 1. Correct Your Intention The first step in making work a form of worship is…
Read More » - Muslim Lifestyle
The Prohibition of Extravagant Life in Islam
Islam is a religion that advocates balance and moderation in every aspect of life, including financial conduct. Extravagance, or wasteful spending, is a behavior strictly prohibited in Islam because it not only leads to personal detriment but also causes harm to society. This article explores the Islamic stance on extravagance, the dangers it poses, and how Muslims can avoid such…
Read More » - Muslim Lifestyle
Islamic Perspective on Saving: Between Virtue and Excess
Saving money is a common practice in daily life, viewed in Islam as a means of ensuring financial security and fulfilling one’s responsibility in managing wealth. However, Islam draws a clear distinction between virtuous saving and the condemned practice of hoarding wealth. This article will explore how saving is perceived in Islam, highlighting when it is considered praiseworthy and when…
Read More » - Muslim Lifestyle
Witr Prayer: Its Importance,Urgency and Virtue
The Witr prayer is a highly recommended sunnah prayer in Islam, performed as the closing prayer of the night, particularly after Isha. Although it is not obligatory, Witr holds significant value in strengthening a Muslim’s worship. The Prophet Muhammad (peace be upon him) consistently performed Witr, whether traveling or at home. Therefore, understanding the urgency and virtues of Witr enriches…
Read More »