Methodology
Every number on the Idiot Index is computed against a published methodology, sourced from public regulatory filings, and witnessed with a verifiable cryptographic receipt. Below is the full set of ratios we publish, what they measure, and how to verify them.
Every published number carries a receipt
For every ratio we publish, we compute a SHA-256 hash over the canonical JSON of the company id, fiscal year, ratio type, value, methodology version, and computation timestamp. This hash is stored alongside the value. Anyone can re-derive the hash from the published row and confirm the number hasn't been changed since it was witnessed.
The internal verification dashboard re-hashes every receipt on read and surfaces the result as a verified badge — visible on every leaderboard row and detail page.
The ratios we publish
Six primary ratios. The first five are the canonical Idiot Index ratios from the spec; Capital Extraction is a universal supplement that replaces Shareholder Extraction for sectors with no R&D (banks, insurers, REITs, utilities).
Markup
How much revenue per dollar of cost.
No methodology has been seeded for Markup yet.
Operational Markup
Revenue per dollar of cost + operating expenses. The multiplier after legitimate operations.
No methodology has been seeded for Operational Markup yet.
Labor Share
How much of every revenue dollar reaches workers.
No methodology has been seeded for Labor Share yet.
Executive Extraction
How many times a CEO out-earns the median employee.
No methodology has been seeded for Executive Extraction yet.
Shareholder Extraction
Dollars sent to shareholders for every dollar invested in R&D.
No methodology has been seeded for Shareholder Extraction yet.
Capital Extraction
How much of net profit goes to shareholders rather than back into the business.
No methodology has been seeded for Capital Extraction yet.