The Idiot Index

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Sector
Capital ExtractionApplied to fabless and integrated semiconductor companies. COGS captures wafer, foundry, packaging, and test costs; Operational Markup is the more cyclically-stable indicator across product cycles.
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Capital Extraction in Semiconductor · FY 2023

26 of 34 companies · highest first
  1. 1
    ALGMAllegro Microsystems
    2228% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6080Top 2%
    22.28
    × buybacks+dividends / net income
  2. 2
    RMBSRambus
    546% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6080Top 6%
    5.4588
    × buybacks+dividends / net income
  3. 3
    ADIAnalog Devices
    267% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6080Top 10%
    2.6715
    × buybacks+dividends / net income
  4. 4
    NXPINXP
    245% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6080Top 13%
    2.4463
    × buybacks+dividends / net income
  5. 5
    MCHPMicrochip
    111% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.6080Top 17%
    1.1113
    × buybacks+dividends / net income
  6. 6
    AVGOBroadcom
    92% of net profit returned to shareholders, 8% reinvested
    sector median 0.6080Top 21%
    0.9222
    × buybacks+dividends / net income
  7. 7
    LRCXLam Research
    88% of net profit returned to shareholders, 12% reinvested
    sector median 0.6080Top 25%
    0.8762
    × buybacks+dividends / net income
  8. 8
    AMATApplied Materials
    78% of net profit returned to shareholders, 22% reinvested
    sector median 0.6080Median range
    0.7792
    × buybacks+dividends / net income
  9. 9
    KLACKLA
    76% of net profit returned to shareholders, 24% reinvested
    sector median 0.6080Median range
    0.7588
    × buybacks+dividends / net income
  10. 10
    LSCCLattice Semi
    73% of net profit returned to shareholders, 27% reinvested
    sector median 0.6080Median range
    0.7311
    × buybacks+dividends / net income

Not yet covered (8)

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

Applied to fabless and integrated semiconductor companies. COGS captures wafer, foundry, packaging, and test costs; Operational Markup is the more cyclically-stable indicator across product cycles.

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).