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Karat Packaging Inc. (KRT) Financials

KRT
Trailing 12 months to June 30, 2026
Revenue $493.4M +11.6% YoY
Net Income $50.2M +56.6% YoY
EPS (Diluted) $2.50 +57.2% YoY
Free Cash Flow $55.6M +25.2% YoY
Market Cap $1.1B as of Oct 10, 2026
Price / Sales 2.2x on $493.4M revenue, trailing 12 months to June 30, 2026
Price / Earnings 21.7x on $50.2M net income, trailing 12 months to June 30, 2026
Price / Book 6.5x on $166.5M equity, Q2 FY2026

A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 10, 2026; every other figure is from the SEC filings on this page. Not financial advice.

Source SEC Filings (10-K/10-Q) Latest period Q2 FY2026, ended Jun 30, 2026 Reported Currency USD FYE December

Newest figures come from the 10-Q for Q2 FY2026, filed Aug 7, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the KRT SEC filings page.

Karat Packaging Inc. (KRT) reported $493.4M in revenue over the twelve months to Jun 30, 2026, up 11.6% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 6 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI KRT FY2025

Karat is growing revenue, but 2025 cash conversion and operating leverage weakened as distributions outpaced free cash flow.

Operating cash flow fell from $48.0M in 2024 to $33.8M in 2025 even as revenue increased, showing earnings did not translate into the prior year's cash output. Because free cash flow stayed close to operating cash flow while capex was only $756K, the gap points mainly to working-capital absorption—consistent with rising inventory and receivables—rather than heavy reinvestment.

Revenue reached $467.7M in 2025, yet operating margin was 8.9%, so growth did not fully flow through to operating profit. That margin is below 10.4% in 2023, while SG&A rose across the period, pointing to heavier overhead rather than clear operating leverage.

Current ratio fell from 3.5x in 2023 to 2.3x in 2025, showing less short-term cushion as liabilities expanded faster than current assets. Dividends and buybacks totaled $39.1M against $33.1M of free cash flow, so shareholder distributions exceeded internally generated cash in 2025.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity CashFlow Returns 66 / 100
Financial Health Score 66/100

Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →

Health score ≠ stock price. This rates the quality of Karat Packaging Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
69

Karat Packaging Inc. has an operating margin of 8.8%, meaning the company retains $9 of operating profit per $100 of revenue. This strong profitability earns a score of 69/100, reflecting efficient cost management and pricing power. This is down from 8.9% the prior year.

Growth
58

Karat Packaging Inc.'s revenue grew 10.7% year-over-year to $467.7M, a solid pace of expansion. This earns a growth score of 58/100.

Leverage
50

Karat Packaging Inc. has a moderate D/E ratio of 0.88. This balance of debt and equity financing earns a leverage score of 50/100.

Liquidity
66

With a current ratio of 2.30, Karat Packaging Inc. holds $2.30 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 66/100.

Cash Flow
64

Karat Packaging Inc. has a free cash flow margin of 7.1%, earning a moderate score of 64/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns
86

Karat Packaging Inc. earns a strong 21.1% return on equity (ROE), meaning it generates $21 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 86/100. This is up from 19.3% the prior year.

Altman Z-Score Safe
7.77

Karat Packaging Inc. scores 7.77, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($1.1B) relative to total liabilities ($130.8M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Partial
6/8

Karat Packaging Inc. passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). All 4 profitability signals pass (positive income, cash flow, and earnings quality), 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed
1.07x

For every $1 of reported earnings, Karat Packaging Inc. generates $1.07 in operating cash flow ($33.8M OCF vs $31.5M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe
20.15x

Karat Packaging Inc. earns $20.15 in operating income for every $1 of interest expense ($41.4M vs $2.1M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

Export CSV

Earnings & Revenue

Revenue
$136.3M
YoY+9.9%
QoQ+16.6%
5Y CAGR+7.6%

Karat Packaging Inc. generated $136.3M in revenue in Q2 2026. This represents an increase of 9.9% from the same quarter a year earlier. Against the prior quarter it is up 16.6%.

EBITDA
$40.3M
YoY+109.7%
QoQ+259.9%
5Y CAGR+34.0%

Karat Packaging Inc.'s EBITDA was $40.3M in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 109.7% from the same quarter a year earlier. Against the prior quarter it is up 259.9%.

Net Income
$29.3M
YoY+168.3%
QoQ+335.1%
5Y CAGR+25.1%

Karat Packaging Inc. reported $29.3M in net income in Q2 2026. This represents an increase of 168.3% from the same quarter a year earlier. Against the prior quarter it is up 335.1%.

EPS (Diluted)
$1.46
YoY+170.4%
QoQ+329.4%
5Y CAGR+23.9%

Karat Packaging Inc. earned $1.46 per diluted share (EPS) in Q2 2026. This represents an increase of 170.4% from the same quarter a year earlier. Against the prior quarter it is up 329.4%.

Cash & Balance Sheet

Free Cash Flow
$33.1M
YoY+245.4%
QoQ+399.5%

Karat Packaging Inc. generated $33.1M in free cash flow in Q2 2026, representing cash available after capex. This represents an increase of 245.4% from the same quarter a year earlier. Against the prior quarter it is up 399.5%.

Cash & Debt
$38.4M
YoY+25.7%
QoQ+33.9%
5Y CAGR+38.0%

Karat Packaging Inc. held $38.4M in cash as of Q2 2026; long-term debt is not reported for that period.

Dividends Per Share
$0.45
YoY0.0%
QoQ0.0%

Karat Packaging Inc. paid $0.45 per share in dividends in Q2 2026. That is unchanged from the same quarter a year earlier. It is unchanged from the prior quarter.

Shares Outstanding
20M
YoY-0.8%
QoQ-0.2%
5Y CAGR+0.2%

Karat Packaging Inc. had 20M shares outstanding in Q2 2026. This represents a decrease of 0.8% from the same quarter a year earlier. Against the prior quarter it is down 0.2%.

Margins & Returns

Gross Margin
56.6%
YoY+17.0pp
QoQ+21.1pp
5Y change+26.9pp

Karat Packaging Inc.'s gross margin was 56.6% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 17.0 percentage points from the same quarter a year earlier. Against the prior quarter it is up 21.1 percentage points.

Operating Margin
27.6%
YoY+14.2pp
QoQ+20.3pp
5Y change+20.3pp

Karat Packaging Inc.'s operating margin was 27.6% in Q2 2026, reflecting core business profitability. This is up 14.2 percentage points from the same quarter a year earlier. Against the prior quarter it is up 20.3 percentage points.

Net Margin
21.5%
YoY+12.7pp
QoQ+15.8pp
5Y change+11.4pp

Karat Packaging Inc.'s net profit margin was 21.5% in Q2 2026, showing the share of revenue converted to profit. This is up 12.7 percentage points from the same quarter a year earlier. Against the prior quarter it is up 15.8 percentage points.

Return on Equity
17.6%
YoY+10.6pp
QoQ+13.1pp
5Y change+9.0pp

Karat Packaging Inc.'s ROE was 17.6% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 10.6 percentage points from the same quarter a year earlier. Against the prior quarter it is up 13.1 percentage points.

Capital Allocation

Capital Expenditures
$56K
YoY-66.5%
QoQ-90.1%
5Y CAGR-39.4%

Karat Packaging Inc. invested $56K in capex in Q2 2026, funding long-term assets and infrastructure. This represents a decrease of 66.5% from the same quarter a year earlier. Against the prior quarter it is down 90.1%.

R&D Spending

Not reported for Q2 2026.

Share Buybacks

Not reported for Q2 2026.

KRT Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

KRT quarterly income statement
MetricQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-KQ3'2410-Q
Revenue$136.3M+9.9%$116.9M+12.9%$115.6M+13.7%$124.5M+10.4%$124.0M+10.1%$103.6M+8.4%$101.6M+6.3%$112.8M+6.9%
Cost of Revenue$59.1M-21.0%$75.4M+20.0%$76.3M+23.4%$81.6M+17.8%$74.9M+8.2%$62.9M+8.4%$61.8M+0.5%$69.3M+4.0%
Gross Profit$77.2M+57.1%$41.5M+1.9%$39.3M-1.2%$42.9M-1.3%$49.1M+13.1%$40.8M+8.4%$39.8M+16.8%$43.5M+11.7%
SG&A Expenses$22.0M+14.8%$20.1M+8.5%$18.7M+2.1%$20.9M+13.2%$19.1M+6.9%$18.5M+10.6%$18.4M+38.5%$18.5M-6.9%
Operating Income$37.6M+127.2%$8.5M+8.2%$8.5M+16.0%$8.6M-23.9%$16.6M+48.9%$7.8M-3.2%$7.3M+57.8%$11.3M-1.0%
EBITDA$40.3M+109.7%$11.2M+6.6%$11.2M+12.4%$11.3M-18.8%$19.2M+39.6%$10.5M-1.8%$10.0M+35.7%$14.0M-0.9%
Interest Expense$425K-18.4%$409K-19.6%$486K-5.8%$539K+0.7%$521K-4.9%$509K-2.9%$516K-2.1%$535K-0.2%
Income Tax$9.4M+171.1%$2.2M+5.7%$2.5M+0.7%$2.3M-11.3%$3.5M+21.8%$2.1M+7.4%$2.5M+223.8%$2.6M-10.6%
Net Income$29.3M+168.3%$6.7M+5.2%$6.8M+21.3%$7.3M-19.5%$10.9M+20.2%$6.4M+3.9%$5.6M+44.0%$9.1M+0.3%
EPS (Basic)$1.47+167.3%$0.34+6.3%$0.34+21.4%$0.36-20.0%$0.55+19.6%$0.32+3.2%$0.28+47.4%$0.45-2.2%
EPS (Diluted)$1.46+170.4%$0.34+6.3%$0.34+21.4%$0.36-20.0%$0.54+20.0%$0.32+3.2%$0.28+40.0%$0.450.0%
Diluted Shares (Avg)20M-0.4%20M-0.6%N/A20M+0.3%20M+0.4%20M+0.6%N/A20M+0.7%

Not reported in any period shown, so not listed: R&D Expenses.

KRT Balance Sheet

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

KRT quarterly balance sheet
MetricQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-KQ3'2410-Q
Total Assets$316.8M-1.3%$282.7M-9.5%$287.7M-2.3%$302.8M-1.3%$321.0M+3.3%$312.2M+11.9%$294.5M+6.6%$306.8M+9.6%
Current Assets$199.3M+7.0%$161.0M-6.4%$161.2M+0.1%$170.7M+0.3%$186.3M+9.7%$172.0M+7.1%$161.0M+3.9%$170.1M+7.2%
Cash & Equivalents$38.4M+25.7%$28.7M-11.7%$37.9M+19.9%$24.0M-38.3%$30.5M+58.2%$32.5M+147.1%$31.6M+36.9%$38.9M+38.1%
Short-Term Investments$15.7M-40.5%$5.7M-75.9%$0-100.0%$19.9M-7.4%$26.4M-19.2%$23.8M-29.0%$28.3M+7.6%$21.5M+19.2%
Inventory$89.1M+0.3%$80.0M+0.1%$81.7M+15.5%$84.1M+18.6%$88.8M+11.2%$79.9M+0.8%$70.7M-1.1%$70.9M-1.0%
Accounts Receivable$49.2M+35.2%$42.3M+30.5%$36.4M+36.2%$37.9M+11.8%$36.4M+8.0%$32.4M+7.6%$26.7M-3.7%$33.9M-0.3%
Long-Term Investments$0$0$0$0$0$0$0$0
Goodwill$3.5M0.0%$3.5M0.0%$3.5M0.0%$3.5M0.0%$3.5M0.0%$3.5M0.0%$3.5M0.0%$3.5M0.0%
Total Liabilities$142.5M-9.9%$127.5M-16.1%$130.8M-1.1%$141.3M-1.4%$158.3M+7.8%$152.0M+28.1%$132.3M+16.4%$143.2M+24.3%
Current Liabilities$88.6M+27.4%$70.4M+17.1%$70.2M+51.2%$79.6M+46.1%$69.5M+25.0%$60.1M+24.7%$46.4M+4.6%$54.5M+19.2%
Non-Current Liabilities$54.0M-39.2%$57.2M-37.8%$60.6M-29.4%$61.6M-30.5%$88.8M-2.7%$91.9M+30.5%$85.9M+23.9%$88.7M+27.6%
Total Equity$166.5M+6.8%$147.4M-3.8%$149.4M-4.0%$154.5M-1.8%$155.8M-1.2%$153.3M-0.7%$155.6M+0.9%$157.3M+2.0%
Retained Earnings$79.9M+21.7%$59.5M-6.7%$61.7M-7.0%$63.9M-7.0%$65.6M-5.7%$63.7M-5.6%$66.3M-2.0%$68.7M+1.4%

Not reported in any period shown, so not listed: Long-Term Debt.

KRT Cash Flow Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

KRT quarterly cash flow statement
MetricQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-KQ3'2410-Q
Operating Cash Flow$33.2M+240.0%$7.2M-6.9%$15.4M+86.1%$982K-95.0%$9.8M-28.8%$7.7M+17.8%$8.3M-19.8%$19.5M+61.8%
Depreciation & Amortization$2.7M+1.8%$2.7M+2.0%$2.8M+2.4%$2.8M+2.8%$2.7M+0.7%$2.7M+2.2%$2.7M-1.1%$2.7M-0.4%
Stock-Based Compensation$596K+33.9%$242K-30.1%N/A$253K-36.8%$445K-52.7%$346K-7.7%N/A$400K+60.0%
Capital Expenditures$56K-66.5%$565K+428.0%$236K+9.3%$246K-18.8%$167K-33.7%$107K-34.4%$216K+517.1%$303K-71.3%
Free Cash Flow$33.1M+245.4%$6.6M-13.0%$15.1M+88.2%$736K-96.2%$9.6M-28.7%$7.6M+19.1%$8.0M-21.7%$19.2M+74.6%
Investing Cash Flow-$11.4M-380.2%-$6.9M-294.8%$20.0M+360.0%$4.3M-58.4%-$2.4M-355.6%$3.5M+144.5%-$7.7M+13.1%$10.3M+29.0%
Financing Cash Flow-$12.1M-29.6%-$9.5M+8.3%-$21.5M-171.7%-$11.8M-15.9%-$9.3M-32.8%-$10.4M-21.4%-$7.9M-20.6%-$10.2M-0.7%
Dividends Paid$9.0M-0.7%$9.0M-0.4%$9.0M+12.5%$9.0M-9.7%$9.0M+28.9%$9.0M+50.5%$8.0M+100.7%$10.0M+0.6%

Not reported in any period shown, so not listed: Share Buybacks.

KRT Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

KRT quarterly financial ratios
MetricQ2'2610-QQ1'2610-QQ4'2510-QQ3'2510-QQ2'2510-QQ1'2510-QQ4'2410-KQ3'2410-Q
Gross Margin56.6%+17.0pp35.5%-3.8pp34.0%-5.1pp34.5%-4.1pp39.6%+1.1pp39.3%0.0pp39.2%+3.5pp38.6%+1.7pp
Operating Margin27.6%+14.2pp7.2%-0.3pp7.3%+0.2pp6.9%-3.1pp13.4%+3.5pp7.5%-0.9pp7.2%+2.3pp10.0%-0.8pp
Net Margin21.5%+12.7pp5.8%-0.4pp5.9%+0.4pp5.9%-2.2pp8.8%+0.7pp6.2%-0.3pp5.5%+1.4pp8.1%-0.5pp
Return on Equity17.6%+10.6pp4.6%+0.4pp4.6%+1.0pp4.7%-1.0pp7.0%+1.2pp4.2%+0.2pp3.6%+1.1pp5.8%-0.1pp
Return on Assets9.3%+5.9pp2.4%+0.3pp2.4%+0.5pp2.4%-0.5pp3.4%+0.5pp2.1%-0.2pp1.9%+0.5pp3.0%-0.3pp
Current Ratio2.25-0.4x2.29-0.6x2.30-1.2x2.14-1.0x2.68-0.4x2.86-0.5x3.470.0x3.12-0.4x
Debt-to-Equity0.86-0.2x0.86-0.1x0.880.0x0.910.0x1.02+0.1x0.99+1.0x0.85+0.8x0.91+0.9x
Asset Turnover0.430.0x0.41+0.1x0.40+0.1x0.410.0x0.390.0x0.330.0x0.350.0x0.370.0x
FCF Margin24.3%+16.5pp5.7%-1.7pp13.1%+5.2pp0.6%-16.4pp7.7%-4.2pp7.3%+0.7pp7.9%-2.8pp17.0%+6.6pp

Similar Companies

Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.

Company Fiscal year Revenue Net income Net margin Market cap Health score
Karat Packaging Inc. KRT FY2025 $467.7M $31.5M 6.7% $1.1B 66/100
Myers Industries, Inc. MYE FY2025 $825.7M $34.9M 4.2% $1.2B 49/100
Ranpak Holdings Corp. PACK FY2025 $395.0M -$38.3M -9.7% $318.2M 33/100
Trimas Corporation TRS FY2025 $645.7M $120.1M 18.6% $1.4B 44/100
Ardagh Metal Packaging S.A. AMBP FY2025 $5.5B $11.0M 0.2% $2.6B 21/100

Frequently Asked Questions

What is Karat Packaging Inc.'s annual revenue?

Karat Packaging Inc. (KRT) reported $467.7M in total revenue for fiscal year 2025. This represents a 10.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Karat Packaging Inc.'s revenue growing?

Karat Packaging Inc. (KRT) revenue grew by 10.7% year-over-year, from $422.6M to $467.7M in fiscal year 2025.

Is Karat Packaging Inc. profitable?

Yes, Karat Packaging Inc. (KRT) reported a net income of $31.5M in fiscal year 2025, with a net profit margin of 6.7%.

Karat Packaging Inc. (KRT) reported diluted earnings per share of $1.56 for fiscal year 2025. This represents a 4.7% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Karat Packaging Inc. (KRT) had EBITDA of $52.3M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

Karat Packaging Inc. (KRT) had a gross margin of 36.8% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Karat Packaging Inc. (KRT) had an operating margin of 8.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Karat Packaging Inc. (KRT) had a net profit margin of 6.7% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Yes, Karat Packaging Inc. (KRT) paid $1.80 per share in dividends during fiscal year 2025.

Karat Packaging Inc. (KRT) has a return on equity of 21.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Karat Packaging Inc. (KRT) generated $33.1M in free cash flow during fiscal year 2025. This represents a -29.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Karat Packaging Inc. (KRT) generated $33.8M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Karat Packaging Inc. (KRT) had $287.7M in total assets as of fiscal year 2025, including both current and long-term assets.

Karat Packaging Inc. (KRT) invested $756K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Yes, Karat Packaging Inc. (KRT) spent $3.0M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Karat Packaging Inc. (KRT) had 20M shares outstanding as of fiscal year 2025.

Karat Packaging Inc. (KRT) had a current ratio of 2.30 as of fiscal year 2025, which is generally considered healthy.

Karat Packaging Inc. (KRT) had a debt-to-equity ratio of 0.88 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Karat Packaging Inc. (KRT) had a return on assets of 10.9% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Karat Packaging Inc. (KRT) trades at 21.7x earnings, its market capitalization divided by net income of $50.2M net income, trailing 12 months to June 30, 2026. The market capitalization is $1.1B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

Karat Packaging Inc. (KRT) trades at 2.2x sales, its market capitalization divided by revenue of $493.4M revenue, trailing 12 months to June 30, 2026. The market capitalization is $1.1B as of Oct 10, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.

Karat Packaging Inc. (KRT) has an Altman Z-Score of 7.77, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Karat Packaging Inc. (KRT) has a Piotroski F-Score of 6 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Karat Packaging Inc. (KRT) has an earnings quality ratio of 1.07x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Karat Packaging Inc. (KRT) has an interest coverage ratio of 20.15x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Karat Packaging Inc. (KRT) scores 66 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.

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