GMROI benchmark

GMROI Benchmark for Industrial Distribution (2026)

Last updated September 2026

The short answer

In industrial distribution, gmroi typically runs 1.8–3.0 — below the cross-industry band of 2.0–3.5. Top quartile above 3.

Formula GMROI = Gross Margin $ ÷ Average Inventory Cost

Industrial distribution against the cross-industry band

IndustryTypical GMROIWhat good looks like
All industrial distribution 2.0–3.5 Above 3 is strong for distribution
Industrial Distribution 1.8–3.0 Top quartile above 3

Higher is better on this metric. Every other industry benchmarked for GMROI is in the full benchmark table.

What gmroi measures

GMROI (gross margin return on inventory investment) is the gross profit earned per dollar invested in inventory. Above 1 means inventory earns more than it costs to hold.

Sources: Epicor / MDM

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