The Idiot Index

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Sector
MarkupApplied 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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Markup in Financial Services

No data for Markup in Financial Services.

What this measures

Full methodology →

How much revenue per dollar of cost.

Ratio
Markup
Sector
Financial Services
Methodology version
v1.0.0
Formula
Revenue / COGS
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.

Captures gross extraction per dollar of input. A markup ratio of 5.0 means the company collects $5 in revenue for every $1 of cost-of-goods.

Source data: Revenues (us-gaap:Revenues / ifrs-full:Revenue) and CostOfGoodsAndServicesSold (us-gaap) or CostOfSales (ifrs-full).