The Idiot Index

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Sector
Capital ExtractionApplied to chemicals, industrial gases, mining, metals, and packaging companies. COGS captures raw material extraction, refining, and primary processing — this sector is the "stuff that becomes other stuff" layer of the economy. Markup ratios are cyclical with commodity input…
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Capital Extraction in Materials & Chemicals · FY 2023

36 of 38 companies · highest first
  1. 1
    IFFIFF
    239% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5332Top 1%
    2.3907
    × buybacks+dividends / net income
  2. 2
    NEMNewmont
    196% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5332Top 4%
    1.9571
    × buybacks+dividends / net income
  3. 3
    SHWSherwin-Williams
    179% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5332Top 7%
    1.7911
    × buybacks+dividends / net income
  4. 4
    LINLinde
    178% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5332Top 10%
    1.7776
    × buybacks+dividends / net income
  5. 5
    ALBAlbemarle
    144% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5332Top 13%
    1.4381
    × buybacks+dividends / net income
  6. 6
    IPInternational Paper
    92% of net profit returned to shareholders, 8% reinvested
    sector median 0.5332Top 15%
    0.9241
    × buybacks+dividends / net income
  7. 7
    AXTAAxalta
    92% of net profit returned to shareholders, 8% reinvested
    sector median 0.5332Top 18%
    0.9238
    × buybacks+dividends / net income
  8. 8
    FMCFMC
    88% of net profit returned to shareholders, 12% reinvested
    sector median 0.5332Top 21%
    0.8751
    × buybacks+dividends / net income
  9. 9
    CTVACorteva
    77% of net profit returned to shareholders, 23% reinvested
    sector median 0.5332Top 24%
    0.7658
    × buybacks+dividends / net income
  10. 10
    ATRAptarGroup
    72% of net profit returned to shareholders, 28% reinvested
    sector median 0.5332Median range
    0.7237
    × buybacks+dividends / net income

Not yet covered (2)

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

Applied to chemicals, industrial gases, mining, metals, and packaging companies. COGS captures raw material extraction, refining, and primary processing — this sector is the "stuff that becomes other stuff" layer of the economy. Markup ratios are cyclical with commodity input costs; sector medians are the right comparison. Shareholder Extraction is informative because materials companies face structural choices between buybacks and reinvestment in capacity.

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).