The Idiot Index

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Capital ExtractionApplied to pharmaceutical and integrated healthcare companies. COGS captures manufacturing of drugs, devices, and clinical services; R&D in this sector is capitalized into pipeline value rather than expensed-and-forgotten, so the Shareholder Extraction ratio carries explicit…
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Capital Extraction in Pharma & Healthcare · FY 2023

44 of 48 companies · highest first
  1. 1
    BMYBristol-Myers Squibb
    153% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5294Top 1%
    1.5275
    × buybacks+dividends / net income
  2. 2
    AMGNAmgen
    153% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5294Top 3%
    1.5252
    × buybacks+dividends / net income
  3. 3
    CICigna
    149% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5294Top 6%
    1.4921
    × buybacks+dividends / net income
  4. 4
    BDXBD
    134% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5294Top 8%
    1.3375
    × buybacks+dividends / net income
  5. 5
    HCAHCA Healthcare
    127% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5294Top 10%
    1.2707
    × buybacks+dividends / net income
  6. 6
    CAHCardinal Health
    127% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5294Top 13%
    1.2651
    × buybacks+dividends / net income
  7. 7
    DGXQuest Diagnostics
    126% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5294Top 15%
    1.2571
    × buybacks+dividends / net income
  8. 8
    BIIBBiogen
    116% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5294Top 17%
    1.1567
    × buybacks+dividends / net income
  9. 9
    MDTMedtronic
    105% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5294Top 19%
    1.0460
    × buybacks+dividends / net income
  10. 10
    IDXXIDEXX Labs
    100% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.5294Top 22%
    1.0026
    × buybacks+dividends / net income

Not yet covered (4)

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

Applied to pharmaceutical and integrated healthcare companies. COGS captures manufacturing of drugs, devices, and clinical services; R&D in this sector is capitalized into pipeline value rather than expensed-and-forgotten, so the Shareholder Extraction ratio carries explicit weight as an indicator of capital allocation priority.

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).