The Idiot Index

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Sector
Operational MarkupApplied to enterprise and developer-platform software companies. COGS captures hosting, support, and customer-success costs; the Markup Ratio is meaningful but the Operational Markup is the load-bearing indicator because most platform investment flows through OpEx (R&D, S&M).
OrderHighest first

Operational Markup in Software Platform · FY 2023

24 of 40 companies · highest first
  1. 1
    MSFTMicrosoft
    $1 of cost+opex becomes $1.71 of revenue
    sector median 1.0697Top 2%
    1.7122
    × revenue / (cost + opex)
  2. 2
    VRSKVerisk
    $1 of cost+opex becomes $1.59 of revenue
    sector median 1.0697Top 6%
    1.5876
    × revenue / (cost + opex)
  3. 3
    ADBEAdobe
    $1 of cost+opex becomes $1.58 of revenue
    sector median 1.0697Top 10%
    1.5812
    × revenue / (cost + opex)
  4. 4
    JKHYJack Henry
    $1 of cost+opex becomes $1.29 of revenue
    sector median 1.0697Top 15%
    1.2933
    × revenue / (cost + opex)
  5. 5
    MANHManhattan Associates
    $1 of cost+opex becomes $1.25 of revenue
    sector median 1.0697Top 19%
    1.2538
    × revenue / (cost + opex)
  6. 6
    TYLTyler Technologies
    $1 of cost+opex becomes $1.25 of revenue
    sector median 1.0697Top 23%
    1.2506
    × revenue / (cost + opex)
  7. 7
    FTNTFortinet
    $1 of cost+opex becomes $1.24 of revenue
    sector median 1.0697Median range
    1.2416
    × revenue / (cost + opex)
  8. 8
    ROPRoper Technologies
    $1 of cost+opex becomes $1.21 of revenue
    sector median 1.0697Median range
    1.2136
    × revenue / (cost + opex)
  9. 9
    SNPSSynopsys
    $1 of cost+opex becomes $1.21 of revenue
    sector median 1.0697Median range
    1.2118
    × revenue / (cost + opex)
  10. 10
    DBXDropbox
    $1 of cost+opex becomes $1.15 of revenue
    sector median 1.0697Median range
    1.1457
    × revenue / (cost + opex)

Not yet covered (16)

These companies are in the Software Platform 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
Software Platform
Methodology version
v1.0.0
Formula
Revenue / (COGS + OperatingExpenses)
Sector context

Applied to enterprise and developer-platform software companies. COGS captures hosting, support, and customer-success costs; the Markup Ratio is meaningful but the Operational Markup is the load-bearing indicator because most platform investment flows through OpEx (R&D, S&M).

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.