GMROI benchmark
GMROI Benchmark for MRO Distribution (2026)
Last updated July 2026
In mro distribution, gmroi typically runs 1.5–2.5. Service buffers weigh on GMROI. 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.
GMROI = Gross Margin $ ÷ Average Inventory Cost GMROI by industry (2026)
| Industry | Typical GMROI | What 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 |
| MRO Distribution | 1.5–2.5 | Service buffers weigh on GMROI |
| Electrical Distribution | 2.0–3.2 | Faster mix lifts GMROI |
| PVF Distribution | 1.6–2.6 | Deep tails drag the ratio down |
| Oil & Gas Distribution | 1.4–2.4 | High-value spares cap GMROI; above 2.4 is strong |
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.
Where does yours land? If mro distribution operations want to move GMROI in the right direction, the fastest lever is usually the excess and obsolete tail — the SKUs holding cash without serving demand.
Sources: Epicor / MDM
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