Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Schedule of earnings per share

Basic earnings per share is calculated by dividing the net income attributable to equity holders of the Company for the year by the weighted average number of common shares outstanding during the period.

	Year Ended December 31,
	2021		2020
	(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.	$	20,778	$	17,517
Weighted average shares	18,409		15,177
Basic earnings per share	$	1.13	$	1.15

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

	Year Ended December 31,
	2021		2020
	(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.	$	20,778	$	17,517
Weighted average shares	18,409		15,177
Dilutive shares
Stock options and restricted stock units	157		271
Total dilutive shares	18,566		15,448
Diluted earnings per share	$	1.12	$	1.13