Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of earnings per share

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.	$	6,096	$	3,786	$	19,107	$	15,149
Weighted average number of common shares in issue	19,809		19,710		19,809		17,945
Basic earnings per share	$	0.31	$	0.19	$	0.96	$	0.84

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.	$	6,096	$	3,786	$	19,107	$	15,149
Weighted average number of common shares in issue	19,809		19,710		19,809		17,945
Dilutive shares
Stock options and restricted stock units	129		171		113		165
Adjusted weighted average number of common shares	19,938		19,881		19,922		18,110
Diluted earnings per share	$	0.31	$	0.19	$	0.96	$	0.84