XML 30 R19.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Earnings Per Share
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
(a)Basic
Basic earnings per share is calculated by dividing the net income attributable to equity holders of the Company for the period by the weighted average number of common shares outstanding during the period.
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.$9,100 $10,502 $15,266 $19,507 
Weighted average number of common shares in issue19,994 19,887 19,982 19,887 
Basic earnings per share$0.46 $0.53 $0.76 $0.98 
(b)Diluted
Diluted earnings per share is calculated based upon the weighted average number of common shares and common equivalent shares outstanding during the period, calculated using the treasury stock method. Under the treasury stock method, exercise proceeds include the amount the employee must pay for exercising stock options and the amount of compensation cost related to stock awards for future services that the Company has not yet recognized. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect.
The following table summarizes the calculation of diluted earnings per share:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in thousands, except per share data)
Net income attributable to Karat Packaging Inc.$9,100 $10,502 $15,266 $19,507 
Weighted average number of common shares in issue19,994 19,887 19,982 19,887 
Dilutive shares
Stock options and restricted stock units120 67 113 60 
Adjusted weighted average number of common shares20,114 19,954 20,095 19,947 
Diluted earnings per share$0.45 $0.53 $0.76 $0.98 
For the three months ended June 30, 2024 and 2023, a total of 0 and 420,000 shares of potentially dilutive shares, respectively, have been excluded in the diluted earnings per share calculation due to their anti-dilutive impact on earnings per share. For the six months ended June 30, 2024 and 2023, a total of 10,000 and 427,000 shares of potentially dilutive shares, respectively, have been excluded in the diluted earnings per share calculation due to its anti-dilutive impact on earnings per share.