Karat Packaging Inc. — Earnings Quality Grade C
KRT · Consumer Cyclical
Some red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 28 days, change +5 days YoY
AR growth 36.2% exceeds revenue growth 10.7%
Revenue grew 10.7% but CFFO declined -29.5%
Small-cap context: Small-cap revenue/CFFO ratio is sensitive to growth-stage working-capital draws.
Expense Quality
Inventory 15.5% vs COGS 14.4%. Normal
CapEx growth 10.7% vs revenue 10.7%. Normal
SG&A/Gross Profit = 73.6%, exceeds 70%
Gross margin 36.8%, change -2.1pp. Stable
Cash Flow Quality
CFFO/NI = 1.07. Profits backed by cash
FCF $0.0B, FCF/NI = 0.93
Accruals ratio = -0.8%. Low accruals
Cash $0.0B covers 86% of debt $0.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 2% of equity. Manageable
Debt/EBITDA = 0.9x. Healthy
Other assets -5.5% vs revenue 10.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -8% YoY. Normal
Manipulation Score
Insufficient data
Portfolio monitoring
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Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25