Karat Packaging has a Cash Ratio of 1.29. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Karat Packaging's Cash Ratio or its related term are showing as below:
KRT'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.12 Max: 1.29
Current: 1.29
During the past 8 years, Karat Packaging's highest Cash Ratio was 1.29. The lowest was 0.01. And the median was 0.12.
KRT's Cash Ratio is ranked better than 82.23% of 394
companies
in the Packaging & Containers industry
Industry Median: 0.345
vs KRT: 1.29
Karat Packaging Cash Ratio Historical Data
The historical data trend for Karat Packaging's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Karat Packaging's Cash Ratio
For the Packaging & Containers subindustry, Karat Packaging's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Karat Packaging's Cash Ratio Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Karat Packaging's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Karat Packaging (NAS:KRT) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Karat Packaging Cash Ratio Related Terms
Thank you for viewing the detailed overview of Karat Packaging's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Karat Packaging Inc is engaged in the manufacturing and distribution of disposable products used in restaurants and food service settings. The company operates and evaluates its business as a single reportable segment which encompasses the manufacturing and distribution of a diverse range of single-use food and beverage service products made from materials such as plastic, paper, biopolymer-based, and other compostable forms. The company offers products for the foodservice industry, including food packaging, containers, tableware, cups, lids, cutlery, and straws. These products are available in plastic, paper, biopolymer-based and other compostable forms. Its product line includes a variety of brands such as Tea Zone, Karat, Karat Earth, and Total Clean.
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