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

Karat Packaging Inc. (KRT) has a Shariah compliance score of 89/100 (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: 5.1%), (3) interest-bearing deposits below 30% (KRT: 5.4%), 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).

KRT: Is Karat Packaging Inc. Halal?

Karat Packaging Inc.

NASDAQConsumer CyclicalUS

$35.45

+2.07%

Market Cap: 707.7M

Compliance Status

Halal

Screened on Jul 15, 2026 · AAOIFI Standard 21

Very Good

89Score

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 89/100 (Grade: A).

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

5.1% of 30.0% limit

What this means for you

You can own KRT

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purify 0.5% of your income from KRT

That is about $0.50 of every $100 you earn from it. Donate this share to charity.

Calculate my exact amount

About Karat Packaging Inc.

Karat Packaging Inc. is a company dedicated to the manufacturing and distribution of various single-use consumables. These items, crafted from materials such as traditional plastics, paper, and environmentally friendly biopolymer-based or other compostable forms, are primarily intended for use across the restaurant and broader foodservice sectors. Its product range is extensive, encompassing items like containers for food and carry-out orders, packaging bags, general tableware, drinking cups, matching lids, disposable cutlery, straws, specialized beverage components, necessary equipment, and protective gloves, many of which are sold under its "Karat Earth" label. The company supplies its merchandise to a diverse clientele, including national and regional wholesale distributors, large restaurant groups, retail outlets, and direct online purchasers. Furthermore, Karat Packaging offers supplementary services such as innovation in new product lines, graphic design, custom printing, and comprehensive logistics solutions. The firm was established in 2000 and operates from its main office situated in Chino, California.

Sector: Consumer Cyclical · Industry: Packaging & Containers

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 15, 2026

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.

Fiscal: Q1 2026Data source: EDGAR

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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 5.1% (limit 30%); interest-bearing deposits of 5.4% (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: Jul 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.