Karat PackagingFRA:0WJ +0.68%85 Current Ratio is 2.29 as of Mar. 2026, which is 25% below its 10-year median of 3.05. GuruFocus rates FRA:0WJ with a GF Score™ of 85/100 and a GF Value™ of €25.97. The stock has 6 warning signs investors should review. Among 399 Packaging & Containers companies, Karat Packaging ranks better than 69.42% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Karat Packaging's current ratio for the quarter that ended in Mar. 2026 was 2.29.
Karat Packaging has a current ratio of 2.29. It generally indicates good short-term financial strength.
The historical rank and industry rank for Karat Packaging's Current Ratio or its related term are showing as below:
FRA:0WJ'
s Current Ratio Range Over the Past 10 Years
Min: 0.79 Med: 3.05 Max: 3.59
Current: 2.29
During the past 9 years, Karat Packaging's highest Current Ratio was 3.59. The lowest was 0.79. And the median was 3.05.
FRA:0WJ's Current Ratio is ranked better than 69.42% of 399
companies
in the Packaging & Containers industry
Industry Median: 1.71
vs FRA:0WJ: 2.29
Karat Packaging (FRA:0WJ) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Karat Packaging Current Ratio Related Terms
Karat Packaging Current Ratio Historical Data
* Premium members only.
The historical data trend for Karat Packaging's Current 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.
FRA:0WJ vs PACK, ORBS, MYE: Current Ratio Comparison
For the Packaging & Containers subindustry, Karat Packaging's Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Current Ratio distribution charts can be found below:
* The bar in red indicates where Karat Packaging's Current 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 (FRA:0WJ) has a Current Ratio of 2.29 as of Mar. 2026. This is 25% below median its historical median of 3.05. Over the past decade, Karat Packaging's Current Ratio has ranged from 0.79 to 3.59. According to the industry distribution chart, Karat Packaging ranks #122 out of 399 companies in the Packaging & Containers industry, placing it in the top 30.6%.
Is Karat Packaging's Current Ratio too high?
Karat Packaging's current Current Ratio of 2.29 is 25% below median its 10-year median of 3.05. Over the past 10 years, this metric has ranged from a low of 0.79 to a high of 3.59. The Packaging & Containers industry median Current Ratio is 1.71. Karat Packaging's value of 2.29 is 33.9% above this industry median. Based on the distribution chart, Karat Packaging ranks #122 out of 399 companies in the Packaging & Containers industry, which is above the industry midpoint. Overall, Karat Packaging has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Karat Packaging's Current Ratio compare to PACK and ORBS?
According to the Packaging & Containers industry distribution chart, Karat Packaging ranks #122 out of 399 companies for Current Ratio. This puts Karat Packaging in the upper half of its industry. The industry median Current Ratio is 1.71. Karat Packaging's value of 2.29 is 33.9% above this benchmark. Historically, Karat Packaging's own Current Ratio has ranged from 0.79 to 3.59 over the past decade. While the company's 10-year median is 3.05 vs. the industry median of 1.71, 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 Current Ratio for a Packaging & Containers company?
The median Current Ratio among Packaging & Containers companies is 1.71, based on 399 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karat Packaging's current Current Ratio of 2.29 is 33.9% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Packaging & Containers industry, the median Current Ratio is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current Current Ratio is 2.29, which is 25% below median its own 10-year median of 3.05. 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?
Karat Packaging (FRA:0WJ) has a current Current Ratio of 2.29. The stock's GF Value™ is €25.97, compared to a current price of €29.40 — trading 13.2% above its estimated fair value. The current Current Ratio is 2.29, which is 25% below median its 10-year median of 3.05 and 33.9% above the Packaging & Containers industry median of 1.71. Karat Packaging's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Karat Packaging (FRA:0WJ), the current Current Ratio is 2.29 as of Mar. 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 (FRA:0WJ) Overvalued in 2026?
Based on GuruFocus' analysis, Karat Packaging stock appears to be overvalued.
The current stock price of €29.40 is trading 13.2% above its estimated GF Value™ of €25.97.
Key valuation signals for FRA:0WJ:
Current Ratio: 2.29 (25% below median its 10-year median of 3.05)
GF Value™: €25.97 vs. price of €29.40 (13.2% above fair value)
Industry Position: 33.9% above the Packaging & Containers median (#122 of 399)
No single metric tells the full story. See the FRA:0WJ 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.
85GF Score
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