The Idiot Index

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Sector
Capital ExtractionApplied to companies whose primary cost basis is physical materials and manufacturing.
OrderHighest first

Capital Extraction in Hardware Manufacturing · FY 2023

42 of 45 companies · highest first
  1. 1
    MASMasco
    302% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6995Top 1%
    3.0171
    × buybacks+dividends / net income
  2. 2
    RTXRTX
    137% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6995Top 4%
    1.3675
    × buybacks+dividends / net income
  3. 3
    IRIngersoll Rand
    132% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6995Top 6%
    1.3244
    × buybacks+dividends / net income
  4. 4
    JCIJohnson Controls
    126% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6995Top 8%
    1.2639
    × buybacks+dividends / net income
  5. 5
    TXTTextron
    126% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6995Top 11%
    1.2587
    × buybacks+dividends / net income
  6. 6
    TTTrane Technologies
    117% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6995Top 13%
    1.1672
    × buybacks+dividends / net income
  7. 7
    LMTLockheed Martin
    111% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6995Top 15%
    1.1127
    × buybacks+dividends / net income
  8. 8
    HPQHP
    110% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6995Top 18%
    1.0988
    × buybacks+dividends / net income
  9. 9
    HONHoneywell
    108% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6995Top 20%
    1.0837
    × buybacks+dividends / net income
  10. 10
    AAPLApple
    106% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6995Top 23%
    1.0608
    × buybacks+dividends / net income

Not yet covered (3)

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

Applied to companies whose primary cost basis is physical materials and manufacturing.

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).