Inventory Turnover Ratio benchmark
Inventory Turnover Ratio Benchmark for Utilities & Power (2026)
Last updated July 2026
In utilities & power, inventory turnover ratio typically runs 1.5–3 turns. Critical spares lower turns; above 3 is strong. 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.
Inventory Turns = Cost of Goods Sold ÷ Average Inventory Inventory Turnover Ratio by industry (2026)
| 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 |
| Oil & Gas Distribution | 2–4 turns | Long-lead spares cap turns; above 4 is strong |
| MRO Distribution | 2–4 turns | Criticality buffers lower turns; target the dead tail |
| Electrical Distribution | 4–6 turns | Faster-moving mix; above 6 is excellent |
| PVF Distribution | 2–4 turns | Deep tails cap turns; target dead stock |
| Utilities & Power | 1.5–3 turns | Critical spares lower turns; above 3 is strong |
| Oilfield Services | 1.5–3 turns | Project demand caps turns; above 3 is strong |
| Mining | 1.5–3 turns | Remote spares lower turns; target idle equipment |
| Chemical & Process Manufacturing | 2–4 turns | Reliability spares weigh on turns |
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.
Where does yours land? If utilities & power operations want to move Turns 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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