The Idiot Index

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Sector
Operational MarkupApplied 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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Operational Markup in Semiconductor · FY 2023

26 of 34 companies · highest first
  1. 1
    TXNTexas Instruments
    $1 of cost+opex becomes $2.00 of revenue
    sector median 1.3027Top 2%
    1.9965
    × revenue / (cost + opex)
  2. 2
    KLACKLA
    $1 of cost+opex becomes $1.56 of revenue
    sector median 1.3027Top 6%
    1.5617
    × revenue / (cost + opex)
  3. 3
    TERTeradyne
    $1 of cost+opex becomes $1.48 of revenue
    sector median 1.3027Top 10%
    1.4799
    × revenue / (cost + opex)
  4. 4
    SWKSSkyworks
    $1 of cost+opex becomes $1.46 of revenue
    sector median 1.3027Top 13%
    1.4612
    × revenue / (cost + opex)
  5. 5
    AVGOBroadcom
    $1 of cost+opex becomes $1.45 of revenue
    sector median 1.3027Top 17%
    1.4500
    × revenue / (cost + opex)
  6. 6
    LRCXLam Research
    $1 of cost+opex becomes $1.44 of revenue
    sector median 1.3027Top 21%
    1.4418
    × revenue / (cost + opex)
  7. 7
    AMATApplied Materials
    $1 of cost+opex becomes $1.43 of revenue
    sector median 1.3027Top 25%
    1.4259
    × revenue / (cost + opex)
  8. 8
    QCOMQualcomm
    $1 of cost+opex becomes $1.41 of revenue
    sector median 1.3027Median range
    1.4117
    × revenue / (cost + opex)
  9. 9
    ENTGEntegris
    $1 of cost+opex becomes $1.35 of revenue
    sector median 1.3027Median range
    1.3529
    × revenue / (cost + opex)
  10. 10
    MUMicron
    $1 of cost+opex becomes $1.34 of revenue
    sector median 1.3027Median range
    1.3356
    × revenue / (cost + opex)

Not yet covered (8)

These companies are in the Semiconductor 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
Semiconductor
Methodology version
v1.0.0
Formula
Revenue / (COGS + OperatingExpenses)
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.

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.