Sure, this is not too good a model, but it gives you an inkling, in the case of INTC, they have started to pay dividends which should be added to the retained earnings (cumulatively). AMAT has been around a little less than INTC and look at their ratio, not a bad long term performer...
I think it is a valid point, after all companies' raison d'etre is not only returning invested capital but also providing a yield on it, which requires positive retained earnings. Just look at LLTC which was founded by a frustrated ex-employee of NSM because the profits he made were regularly wasted to feed other loss-making units. Here a performance comparison:
It is true that IP is not reflected in the balance sheet of companies, but it is in market value, hence KO's high price to book value. Then you got to ask yourself what IP actually is worth if it can't be turned into hard dollars on the balance sheet.
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