Inventory Turnover Ratio benchmark
Inventory Turnover Ratio Benchmark for Industrial Distribution (2026)
Last updated September 2026
The short answer
In industrial distribution, inventory turnover ratio typically runs 3–5 turns — below the cross-industry band of 3–6 turns. Top quartile above 5.
Formula
Inventory Turns = Cost of Goods Sold ÷ Average Inventory Industrial distribution against the cross-industry band
| Industry | Typical Turns | What good looks like |
|---|---|---|
| All industrial distribution | 3–6 turns | Best-in-class distributors exceed 6 turns |
| Industrial Distribution | 3–5 turns | Top quartile above 5 |
Higher is better on this metric. Every other industry benchmarked for Turns is in the full benchmark table.
What inventory turnover ratio measures
Inventory turnover (turns) is how many times a business sells and replaces its average inventory in a year. Higher turns mean less cash tied up per dollar of sales.
Sources: Epicor / MDM
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