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Karat PackagingKRT +0.08%80 Cash Ratio is 0.61 as of Jun. 2026, which is 36% above its 10-year median of 0.45. GuruFocus rates KRT with a GF Score™ of 80/100 and a GF Value™ of $31.36 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 396 Packaging & Containers companies, Karat Packaging ranks better than 68.94% on this metric.
Karat Packaging has a Cash Ratio of 0.61. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
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: 0.45 Max: 1.29
Current: 0.61
During the past 9 years, Karat Packaging's highest Cash Ratio was 1.29. The lowest was 0.01. And the median was 0.45.
KRT's Cash Ratio is ranked better than 68.94% of 396
companies
in the Packaging & Containers industry
Industry Median: 0.3
vs KRT: 0.61
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
Karat Packaging Cash Ratio Historical Data
* Premium members only.
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.
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 Cash Ratio vs 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 (KRT) has a Cash Ratio of 0.61 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Karat Packaging and its competitors. This is 36% above median its historical median of 0.45. Over the past decade, Karat Packaging's Cash Ratio has ranged from 0.01 to 1.29. According to the industry distribution chart, Karat Packaging ranks #123 out of 396 companies in the Packaging & Containers industry, placing it in the top 31.1%.
Is Karat Packaging's Cash Ratio too high?
Karat Packaging's current Cash Ratio of 0.61 is 36% above median its 10-year median of 0.45. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 1.29. The Packaging & Containers industry median Cash Ratio is 0.30. Karat Packaging's value of 0.61 is 103.3% above this industry median. Based on the distribution chart, Karat Packaging ranks #123 out of 396 companies in the Packaging & Containers industry, which is above the industry midpoint. Overall, Karat Packaging has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Karat Packaging's Cash Ratio compare to PACK and MYE?
According to the Packaging & Containers industry distribution chart, Karat Packaging ranks #123 out of 396 companies for Cash Ratio. This puts Karat Packaging in the upper half of its industry. The industry median Cash Ratio is 0.30. Karat Packaging's value of 0.61 is 103.3% above this benchmark. Historically, Karat Packaging's own Cash Ratio has ranged from 0.01 to 1.29 over the past decade. While the company's 10-year median is 0.45 vs. the industry median of 0.30, Karat Packaging has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Packaging & Containers company?
The median Cash Ratio among Packaging & Containers companies is 0.30, based on 396 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karat Packaging's current Cash Ratio of 0.61 is 103.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Karat Packaging and its competitors. For the Packaging & Containers industry, the median Cash Ratio is 0.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current Cash Ratio is 0.61, which is 36% above median its own 10-year median of 0.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karat Packaging stock overvalued right now?
Based on GuruFocus' analysis, Karat Packaging (KRT) is currently considered Significantly Overvalued. The stock's GF Value™ is $31.36, compared to a current price of $48.30 — trading 54% above its estimated fair value. The current Cash Ratio is 0.61, which is 36% above median its 10-year median of 0.45 and 103.3% above the Packaging & Containers industry median of 0.30. Karat Packaging's overall GF Score™ is 80/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Karat Packaging (KRT), the current Cash Ratio is 0.61 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Karat Packaging (KRT) Overvalued in 2026?
Based on GuruFocus' analysis, Karat Packaging stock appears to be overvalued.
The current stock price of $48.30 is trading 54% above its estimated GF Value™ of $31.36.
GuruFocus considers Karat Packaging to be Significantly Overvalued.
Key valuation signals for KRT:
Cash Ratio: 0.61 (36% above median its 10-year median of 0.45)
GF Value™: $31.36 vs. price of $48.30 (54% above fair value)
Industry Position: 103.3% above the Packaging & Containers median (#123 of 396)
No single metric tells the full story. See the KRT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karat Packaging Inc is a distributor and manufacturer of disposable foodservice products and related items, including containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, gloves, and janitorial supplies, available in plastic, paper, biopolymer-based, and other compostable forms. The Company focuses on environmentally friendly products and provides customized solutions including product development, design, printing, and logistics services. It serves customers through chains and distributors, retail, and e-commerce/online, and operates in the manufacturing and distribution of single-use food and beverage products, as well as specialty food and beverage products and restaurant and warehouse supplies.
80GF Score
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