What is Karat Packaging Inc.'s Shariah compliance score?

Karat Packaging Inc. (KRT) has a Shariah compliance score of 87/100 (Grade: A, Very Good) based on AAOIFI screening standards. Scores above 70 typically indicate strong compliance. The score factors in business activity screening and financial ratio analysis including debt levels, interest-bearing deposits, and prohibited income percentages. View the full breakdown at HalalScreener.app.

Does Karat Packaging Inc. pass AAOIFI screening?

Karat Packaging Inc. (KRT) passes AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (KRT: 5.9%), (3) interest-bearing deposits below 30% (KRT: 6.2%), and (4) prohibited income below 5% (KRT: 0.5%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Karat Packaging Inc. stock?

Karat Packaging Inc. (KRT) has a non-permissible income ratio of 0.55%. Muslim investors should purify this percentage of any dividends received and capital gains realized from KRT shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Karat Packaging Inc. for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Karat Packaging Inc. (KRT) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about KRT's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

Is Karat Packaging Inc. (KRT) halal? Halal. Based on AAOIFI screening, Karat Packaging Inc. passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 87/100 (Grade: A).

KRT: Is Karat Packaging Inc. Halal?

Halal

Karat Packaging Inc.

NASDAQConsumer CyclicalUS

$28.45

+1.17%

AvoidBorderlineClean

Purify ~0.5% of income

About Karat Packaging Inc.

Karat Packaging Inc. manufactures and distributes single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand. The company offers its products to domestic and regional distributors, restaurant chains, retail establishments, and online customers. It also provides new product development, design, printing, and logistics services. Karat Packaging Inc. was founded in 2000 and is based in Chino, California.

Sector: Consumer Cyclical · Industry: Packaging & Containers

Shariah Compliance Status

AAOIFI Standard 21Updated Jun 15, 2026

Very Good

Strong compliance across all metrics

87Score

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Financial Ratio Screen

Passed

Financial ratios must be below AAOIFI thresholds

Debt / Market Cap5.9% / 30.0%

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Screened: Jun 15, 2026Fiscal: Q1 2026Source: EDGAR

Purify Your KRT Dividends

0.5% non-compliant income

KRT has 0.5% prohibited income. Calculate exactly how much of your dividends to donate.

Financial Overview

Market Cap

568.0M

Price

$28.45

Sector

Consumer Cyclical

Industry

Packaging & Containers

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Frequently Asked Questions

Is Karat Packaging Inc. (KRT) halal to invest in?

Based on AAOIFI Standard 21 screening, Karat Packaging Inc. (KRT) is rated Halal with a compliance grade of A (Very Good). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).

Why did Karat Packaging Inc. get a A compliance rating?

Karat Packaging Inc. (KRT) received a grade of A (Very Good) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 5.9% (limit 30%); interest-bearing deposits of 6.2% (limit 30%); prohibited income of 0.55% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Karat Packaging Inc.'s Shariah verdict?

Karat Packaging Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Karat Packaging Inc. re-screened for Shariah compliance?

Karat Packaging Inc. (KRT) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jun 15, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.