KRT (Karat Packaging) Inventory Turnover : 0.87 (As of Dec. 2024)

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What is Karat Packaging Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Karat Packaging's Cost of Goods Sold for the three months ended in Dec. 2024 was $61.8 Mil. Karat Packaging's Average Total Inventories for the quarter that ended in Dec. 2024 was $70.8 Mil. Karat Packaging's Inventory Turnover for the quarter that ended in Dec. 2024 was 0.87.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Karat Packaging's Days Inventory for the three months ended in Dec. 2024 was 104.52.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Karat Packaging's Inventory-to-Revenue for the quarter that ended in Dec. 2024 was 0.70.

Karat Packaging Inventory Turnover Historical Data

The historical data trend for Karat Packaging's Inventory Turnover 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.

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Karat Packaging Inventory Turnover Chart

Karat Packaging Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Inventory Turnover

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4.89

4.77

4.49

3.54

3.63

Karat Packaging Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Inventory Turnover	Get a 7-Day Free Trial															0.86	0.77	0.87	0.92	0.87

Karat Packaging Inventory Turnover Calculation

Karat Packaging's Inventory Turnover for the fiscal year that ended in Dec. 2024 is calculated as

	Inventory Turnover (A: Dec. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2024 )	/ (	(Total Inventories (A: Dec. 2023 )	+	Total Inventories (A: Dec. 2024 ))	/	count )
=	258.304	/ (	(71.528	+	70.722)	/	2 )
=	258.304	/	71.125
=	3.63

Karat Packaging's Inventory Turnover for the quarter that ended in Dec. 2024 is calculated as

	Inventory Turnover (Q: Dec. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2024 )	/ (	(Total Inventories (Q: Sep. 2024 )	+	Total Inventories (Q: Dec. 2024 ))	/	count )
=	61.826	/ (	(70.918	+	70.722)	/	2 )
=	61.826	/	70.82
=	0.87

Karat Packaging (NAS:KRT) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Karat Packaging's Days Inventory for the three months ended in Dec. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2024 )	/	Cost of Goods Sold (Q: Dec. 2024 )	*	Days in Period
	=	70.82	/	61.826	*	365 / 4
	=	104.52

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Karat Packaging's Inventory to Revenue for the quarter that ended in Dec. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2024 )	/	Revenue (Q: Dec. 2024 )
	=	70.82	/	101.649
	=	0.70

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Karat Packaging Inventory Turnover Related Terms

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Karat Packaging Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Karat Packaging Inc (NAS:KRT) » Definitions » Inventory Turnover

Comparable Companies

PACK MYE TRS YHGJ MGIH DSS OCTO OI AMBP GEF IP SW PKG BALL AMCR AVY CCK TSX:CCL.A BERY GPK

Traded in Other Exchanges

N/A

Address

6185 Kimball Avenue, Chino, CA, USA, 91708

Website

https://www.karatpackaging.com

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.

Executives

Wang Joanne Tzu Jung	officer: Chief Operating Officer	6185 KIMBALL AVE., CHINO CA 91708
Daniel Quire	officer: Chief Revenue Officer	6185 KIMBALL AVENUE, CHINO CA 91708
Marvin Cheng	officer: VP-Manufacturing, Secy	6185 KIMBALL AVE., CHINO CA 91708
Alan Yu	director, 10 percent owner, officer: CEO and Chairman of the BOD	6185 KIMBALL AVE., CHINO CA 91708
Jian Guo	officer: Chief Financial Officer	6185 KIMBALL AVENUE, CHINO CA 91708
Eve Yen	director	4651 SCHAEFER AVENUE, CHINO CA 91710
Peter Lee	officer: Interim CFO	6185 KIMBALL AVENUE, CHINO CA 91708
Ann T Sabahat	officer: Chief Financial Officer	11 MUSICK, IRVINE CA 92618
Paul Y Chen	director	9660 FLAIR DR, STE 300, EL MONTE CA 91731
Eric K Chen	director	6330 SPRING MOUNTAIN RD, STE D, LAS VEGAS NV 89146