The historical rank and industry rank for Karat Packaging's Gross Margin % or its related term are showing as below:
KRT'
s Gross Margin % Range Over the Past 10 Years
Min: 24.77 Med: 29.88 Max: 38.88
Current: 38.88
During the past 8 years, the highestGross Margin % of Karat Packaging was 38.88%. The lowest was 24.77%. And the median was 29.88%.
KRT's Gross Margin % is ranked better than 87.4% of 381
companies
in the Packaging & Containers industry
Industry Median: 21.29
vs KRT: 38.88
Karat Packaging had a gross margin of 39.18% for the quarter that ended in Dec. 2024 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Karat Packaging was 7.50% per year.
Karat Packaging Gross Margin % Historical Data
The historical data trend for Karat Packaging's Gross Margin % 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 Gross Margin %
For the Packaging & Containers subindustry, Karat Packaging's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Karat Packaging's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Karat Packaging had a gross margin of 39.18% for the quarter that ended in Dec. 2024 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Karat Packaging Gross Margin % Related Terms
Thank you for viewing the detailed overview of Karat Packaging's Gross Margin % 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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