Karat PackagingFRA:0WJ +1.39%84 Quick Ratio is 1.15 as of Mar. 2026, which is 14% below its 10-year median of 1.34. GuruFocus rates FRA:0WJ with a GF Score™ of 84/100 and a GF Value™ of €25.78. The stock has 6 warning signs investors should review. Among 396 Packaging & Containers companies, Karat Packaging ranks better than 50.51% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Karat Packaging's quick ratio for the quarter that ended in Mar. 2026 was 1.15.
Karat Packaging has a quick ratio of 1.15. It generally indicates good short-term financial strength.
The historical rank and industry rank for Karat Packaging's Quick Ratio or its related term are showing as below:
FRA:0WJ'
s Quick Ratio Range Over the Past 10 Years
Min: 0.3 Med: 1.34 Max: 1.94
Current: 1.15
During the past 9 years, Karat Packaging's highest Quick Ratio was 1.94. The lowest was 0.30. And the median was 1.34.
FRA:0WJ's Quick Ratio is ranked better than 50.51% of 396
companies
in the Packaging & Containers industry
Industry Median: 1.13
vs FRA:0WJ: 1.15
Karat Packaging (FRA:0WJ) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Karat Packaging Quick Ratio Related Terms
Karat Packaging Quick Ratio Historical Data
* Premium members only.
The historical data trend for Karat Packaging's Quick 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: Quick Ratio Comparison
For the Packaging & Containers subindustry, Karat Packaging's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karat Packaging's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Karat Packaging's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Karat Packaging's Quick Ratio for the fiscal year that ended in Dec. 2025 is calculated as
* 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 Quick Ratio of 1.15 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Karat Packaging and its competitors. This is 14% below median its historical median of 1.34. Over the past decade, Karat Packaging's Quick Ratio has ranged from 0.30 to 1.94. According to the industry distribution chart, Karat Packaging ranks #196 out of 396 companies in the Packaging & Containers industry, placing it in the top 49.5%.
Is Karat Packaging's Quick Ratio too high?
Karat Packaging's current Quick Ratio of 1.15 is 14% below median its 10-year median of 1.34. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 1.94. The Packaging & Containers industry median Quick Ratio is 1.13. Karat Packaging's value of 1.15 is 1.8% above this industry median. Based on the distribution chart, Karat Packaging ranks #196 out of 396 companies in the Packaging & Containers industry, which is above the industry midpoint. Overall, Karat Packaging has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Karat Packaging's Quick Ratio compare to PACK and ORBS?
According to the Packaging & Containers industry distribution chart, Karat Packaging ranks #196 out of 396 companies for Quick Ratio. This puts Karat Packaging in the upper half of its industry. The industry median Quick Ratio is 1.13. Karat Packaging's value of 1.15 is 1.8% above this benchmark. Historically, Karat Packaging's own Quick Ratio has ranged from 0.30 to 1.94 over the past decade. While the company's 10-year median is 1.34 vs. the industry median of 1.13, 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 Quick Ratio for a Packaging & Containers company?
The median Quick Ratio among Packaging & Containers companies is 1.13, based on 396 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Karat Packaging's current Quick Ratio of 1.15 is 1.8% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Karat Packaging and its competitors. For the Packaging & Containers industry, the median Quick Ratio is 1.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karat Packaging's current Quick Ratio is 1.15, which is 14% below median its own 10-year median of 1.34. 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 Quick Ratio of 1.15. The stock's GF Value™ is €25.78, compared to a current price of €29.20 — trading 13.3% above its estimated fair value. The current Quick Ratio is 1.15, which is 14% below median its 10-year median of 1.34 and 1.8% above the Packaging & Containers industry median of 1.13. Karat Packaging's overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Karat Packaging (FRA:0WJ), the current Quick Ratio is 1.15 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 €29.20 is trading 13.3% above its estimated GF Value™ of €25.78.
Key valuation signals for FRA:0WJ:
Quick Ratio: 1.15 (14% below median its 10-year median of 1.34)
GF Value™: €25.78 vs. price of €29.20 (13.3% above fair value)
Industry Position: 1.8% above the Packaging & Containers median (#196 of 396)
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.
84GF Score
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