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

IndustryTypical TurnsWhat 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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