Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of earnings per share

Basic earnings per share is calculated by dividing the net income attributable to Karat Packaging for the period by the weighted average number of common shares outstanding during the related period.

	Three Months Ended March 31,
	2022		2021
	(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.	$	6,667	$	1,780
Weighted average number of common shares in issue	19,808		15,167
Basic earnings per share	$	0.34	$	0.12

The following table summarizes the calculation of diluted earnings per share:

	Three Months Ended March 31,
	2022		2021
	(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.	$	6,667	$	1,780
Weighted average number of common shares in issue	19,808		15,167
Dilutive shares
Stock options and restricted stock units	93		236
Adjusted weighted average number of common shares	19,901		15,403
Diluted earnings per share	$	0.34	$	0.12