Karat Packaging Inc.
KRT Consumer Cyclical Packaging & Containers
Karat Packaging Inc.’s revenue for fiscal 2025 (year ended December 2025) was $467.7 million, up 10.7% from fiscal 2024. In the quarter to June 2026, revenue grew 9.93%, EPS grew 167.3%, free cash flow grew 217.8% and total debt fell 27.8%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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Karat Packaging Inc. (KRT) Altman Z-score
Karat Packaging Inc.'s Altman Z-score for fiscal 2025 is 4.86, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 4.86 | (0.53) |
| FY2024 | 5.38 | (0.02) |
| FY2023 | 5.40 | 0.91 |
| FY2022 | 4.49 | (1.27) |
| FY2021 | 5.76 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.32 | — | 0.38 | |
| Retained earnings / total assets | 0.21 | — | 0.30 | |
| EBIT / total assets | 0.14 | — | 0.48 | |
| Market value of equity / total liabilities | 3.46 | — | 2.08 | |
| Sales / total assets | 1.63 | — | 1.63 | |
| Altman Z-score | Safe zone | 4.86 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 5.00 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| KRT Karat Packaging Inc. | 4.9× |
| MYE Myers Industries, Inc. compare | 2.1× |
| GEF.B Greif Inc. compare | 2.1× |
| ORBS Eightco Holdings Inc. compare | 2.0× |
| TRS TriMas Corporation compare | 2.0× |
| GPK Graphic Packaging Holding Company compare | 1.5× |
| OI O-I Glass, Inc. compare | 1.2× |
| AMBP Ardagh Metal Packaging S.A. compare | 1.1× |
| PACK Ranpak Holdings Corp compare | 0.6× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets