Is Karat Packaging Inc. (KRT) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 20.3% / 30% | 13.1% / 30% | 5.9% / 30% | 0.54% / 5% | ✓ HALAL |
| DJIM | 20.3% / 33% | 13.1% / 33% | 5.9% / 33% | 0.54% / 5% | ✓ HALAL |
| MSCI | 31.5% / 33% | 20.3% / 33% | 9.1% / 33% | 0.54% / 5% | ✓ HALAL |
| S&P | 20.3% / 33% | 13.1% / 33% | 5.9% / 33% | 0.54% / 5% | ✓ HALAL |
| FTSE | 31.5% / 33% | 20.3% / 33% | 9.1% / 50% | 0.54% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 36.8% | |
| Operating Margin | 7.5% | |
| Net Margin | 6.7% | |
| Return on Equity (ROE) | 20.5% | |
| Return on Assets (ROA) | 8.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $34M |
| Free Cash Flow | $29M |
| Total Debt | $44M |
| Debt-to-Equity | 50.9 |
| Current Ratio | 2.3 |
| Total Assets | $288M |
Price & Trading
| Last Close | $27.71 |
| 50-Day MA | $25.33 |
| 200-Day MA | $25.00 |
| Avg Volume | 73K |
| Beta | 1.1 |
|
52-Week Range
$20.61
| |
About Karat Packaging Inc. (KRT)
Karat Packaging Inc., together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It offers food and take-out containers, bags, boxes, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, gloves, utensils, janitorial and warehouse supplies, and other products under the Karat Earth brand. The company also distributes food and beverage items, such as syrups, boba tea, and coffee drinks; and provides new product development, design, printing, and logistics services. It offers its products to national and regional distributors, restaurant chains, retail establishments, and online customers. Karat Packaging Inc. was founded in 2000 and is based in Chino, California.
Purification Calculator
As a halal stock with 0.54% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Karat Packaging Inc. (KRT) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Karat Packaging Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Karat Packaging Inc.'s debt ratio?
Karat Packaging Inc.'s debt ratio is 20.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 31.5%.
Does Karat Packaging Inc. require dividend purification?
Yes, Karat Packaging Inc. has an impermissible income ratio of 0.54%, which means 0.54% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Karat Packaging Inc.'s key financial metrics?
Karat Packaging Inc. has a market capitalization of $555M, trailing P/E ratio of 17.7, and revenue of $468M. The company maintains a gross margin of 36.8% and a net margin of 6.7%. Return on equity stands at 20.5%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.