The Idiot Index

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Sector
Capital ExtractionApplied to banks, insurers, asset managers, and exchanges. The standard Markup formulas (Revenue/COGS) are not meaningful here — banks have no Cost of Goods Sold; their economics run on interest spreads, premiums, and fees. The Shareholder Extraction ratio (which divides by R&D)…
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Capital Extraction in Financial Services · FY 2023

50 of 52 companies · highest first
  1. 1
    AONAon
    318% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6513Top 1%
    3.1793
    × buybacks+dividends / net income
  2. 2
    ALLAllstate
    248% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6513Top 3%
    2.4814
    × buybacks+dividends / net income
  3. 3
    BKBNY Mellon
    151% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6513Top 5%
    1.5145
    × buybacks+dividends / net income
  4. 4
    MTBM&T Bank
    128% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6513Top 7%
    1.2803
    × buybacks+dividends / net income
  5. 5
    AXPAmerican Express
    113% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6513Top 9%
    1.1290
    × buybacks+dividends / net income
  6. 6
    PGRProgressive
    112% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6513Top 11%
    1.1181
    × buybacks+dividends / net income
  7. 7
    EQHEquitable
    110% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6513Top 13%
    1.1014
    × buybacks+dividends / net income
  8. 8
    HBANHuntington
    108% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6513Top 15%
    1.0811
    × buybacks+dividends / net income
  9. 9
    BACBank of America
    104% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6513Top 17%
    1.0376
    × buybacks+dividends / net income
  10. 10
    ZIONZions
    94% of net profit returned to shareholders, 6% reinvested
    sector median 0.6513Top 19%
    0.9398
    × buybacks+dividends / net income

Not yet covered (2)

These companies are in the Financial Services 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
Financial Services
Methodology version
v1.0.0
Formula
(Buybacks + Dividends) / NetIncome
Sector context

Applied to banks, insurers, asset managers, and exchanges. The standard Markup formulas (Revenue/COGS) are not meaningful here — banks have no Cost of Goods Sold; their economics run on interest spreads, premiums, and fees. The Shareholder Extraction ratio (which divides by R&D) is also not meaningful — financial firms typically report no R&D. The load-bearing indicators in this sector are Labor Share, Executive Extraction, and Capital Extraction (the universal share-of-net-income returned to shareholders). Markup-family rows are intentionally not computed for this sector; future methodology versions may add Net Interest Margin Inversion and Combined Ratio variants designed for bank and insurance economics.

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).