The Idiot Index

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Sector
Operational MarkupApplied 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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Operational Markup in Pharma & Healthcare · FY 2023

37 of 48 companies · highest first
  1. 1
    ELVElevance Health
    $1 of cost+opex becomes $5.17 of revenue
    sector median 1.2871Top 1%
    5.1706
    × revenue / (cost + opex)
  2. 2
    MRNAModerna
    $1 of cost+opex becomes $3.57 of revenue
    sector median 1.2871Top 4%
    3.5693
    × revenue / (cost + opex)
  3. 3
    ZTSZoetis
    $1 of cost+opex becomes $1.62 of revenue
    sector median 1.2871Top 7%
    1.6160
    × revenue / (cost + opex)
  4. 4
    VRTXVertex
    $1 of cost+opex becomes $1.58 of revenue
    sector median 1.2871Top 9%
    1.5805
    × revenue / (cost + opex)
  5. 5
    GILDGilead
    $1 of cost+opex becomes $1.57 of revenue
    sector median 1.2871Top 12%
    1.5704
    × revenue / (cost + opex)
  6. 6
    ABBVAbbVie
    $1 of cost+opex becomes $1.47 of revenue
    sector median 1.2871Top 15%
    1.4683
    × revenue / (cost + opex)
  7. 7
    ISRGIntuitive Surgical
    $1 of cost+opex becomes $1.47 of revenue
    sector median 1.2871Top 18%
    1.4682
    × revenue / (cost + opex)
  8. 8
    EWEdwards Lifesciences
    $1 of cost+opex becomes $1.44 of revenue
    sector median 1.2871Top 20%
    1.4353
    × revenue / (cost + opex)
  9. 9
    AMGNAmgen
    $1 of cost+opex becomes $1.42 of revenue
    sector median 1.2871Top 23%
    1.4165
    × revenue / (cost + opex)
  10. 10
    IDXXIDEXX Labs
    $1 of cost+opex becomes $1.41 of revenue
    sector median 1.2871Median range
    1.4082
    × revenue / (cost + opex)

Not yet covered (11)

These companies are in the Pharma & Healthcare cohort but don't have a Operational Markup 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 →

Revenue per dollar of cost + operating expenses. The multiplier after legitimate operations.

Ratio
Operational Markup
Sector
Pharma & Healthcare
Methodology version
v1.0.0
Formula
Revenue / (COGS + OperatingExpenses)
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.

The multiplier after legitimate operations. A high Markup combined with a low Operational Markup tells a specific story: surplus is being reinvested in the business. A high Markup combined with a high Operational Markup tells the opposite story: surplus is going to shareholders.

Source data: Revenues, CostOfGoodsAndServicesSold, OperatingExpenses (us-gaap) or equivalents in IFRS.