GMROI benchmark

GMROI Benchmark for Oil & Gas Distribution (2026)

Last updated July 2026

The short answer

In oil & gas distribution, gmroi typically runs 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.

Formula GMROI = Gross Margin $ ÷ Average Inventory Cost

GMROI by industry (2026)

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
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 oil & gas 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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