The Idiot Index

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Sector
Capital ExtractionApplied to companies whose primary cost basis is cloud infrastructure and customer-facing operations rather than physical materials. The Markup Ratio carries explicit context that COGS captures non-material inputs.
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Capital Extraction in Consumer Internet · FY 2023

22 of 37 companies · highest first
  1. 1
    EXPEExpedia
    1375% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5034Top 2%
    13.75
    × buybacks+dividends / net income
  2. 2
    YELPYelp
    663% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5034Top 7%
    6.6277
    × buybacks+dividends / net income
  3. 3
    BMBLBumble
    329% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5034Top 11%
    3.2870
    × buybacks+dividends / net income
  4. 4
    GDDYGoDaddy
    217% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5034Top 16%
    2.1709
    × buybacks+dividends / net income
  5. 5
    METAMeta
    113% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5034Top 20%
    1.1312
    × buybacks+dividends / net income
  6. 6
    EAElectronic Arts
    99% of net profit returned to shareholders, 1% reinvested
    sector median 0.5034Top 25%
    0.9881
    × buybacks+dividends / net income
  7. 7
    VRSNVerisign
    92% of net profit returned to shareholders, 8% reinvested
    sector median 0.5034Median range
    0.9207
    × buybacks+dividends / net income
  8. 8
    PYPLPayPal
    81% of net profit returned to shareholders, 19% reinvested
    sector median 0.5034Median range
    0.8091
    × buybacks+dividends / net income
  9. 9
    GOOGLAlphabet
    66% of net profit returned to shareholders, 34% reinvested
    sector median 0.5034Median range
    0.6612
    × buybacks+dividends / net income
  10. 10
    ETSYEtsy
    61% of net profit returned to shareholders, 39% reinvested
    sector median 0.5034Median range
    0.6135
    × buybacks+dividends / net income

Not yet covered (15)

These companies are in the Consumer Internet cohort but don't have a Capital Extraction computed for FY 2023. Either the underlying inputs aren't tagged in their XBRL filings, the DEF 14A pay-ratio narrative didn't parse cleanly, or this fiscal year hasn't been ingested for them yet.

What this measures

Full methodology →

How much of net profit goes to shareholders rather than back into the business.

Ratio
Capital Extraction
Sector
Consumer Internet
Methodology version
v1.0.0
Formula
(Buybacks + Dividends) / NetIncome
Sector context

Applied to companies whose primary cost basis is cloud infrastructure and customer-facing operations rather than physical materials. The Markup Ratio carries explicit context that COGS captures non-material inputs.

What share of after-tax profit is returned to shareholders rather than reinvested. Universal across sectors — works for banks, insurers, REITs, and utilities where the Shareholder Extraction ratio (which divides by R&D) is undefined. A value of 1.0 means 100% of net income flows back out to shareholders; above 1.0 means the company is funding shareholder returns from sources beyond current-year earnings (debt, retained cash, asset sales).

Source data: PaymentsForRepurchaseOfCommonStock, PaymentsOfDividends, NetIncomeLoss (us-gaap) or ProfitLoss (ifrs-full).