Wholesale Distribution inventory turnover.
Line-of-credit availability shapes target stocking days at roughly 50 days.
Where the 7.0x median comes from
The 7.0x figure is the cross-firm median for wholesale distribution as of 2026-06-20, derived from the U.S. Census Monthly Wholesale Trade release. Top-quartile operators in this category clear 10.0x; the bottom quartile sits at 5.0x.
At the median, average inventory equals roughly 52 days of cost of goods sold. A business under bank-covenant review should compare its trailing-twelve-month ratio against this median first, then against the 10.0x top-quartile mark before setting a working-capital target.
Benchmark band
The band below plots a hypothetical 7.0x ratio against the industry axis. Colour bands flag whether a result is within fifteen percent of the median (caution), above it (healthy), or more than fifteen percent below it (risk).
Five-year trend
The wholesale distribution median has moved from 6.5x in the earliest comparable year to 7.0x in the latest pull, a gradual lift of 0.5 turns.
How to use this number
- Pull trailing-twelve-month COGS and the matching average inventory balance from the GL.
- Compute your turnover with the calculator on the homepage. Select the Wholesale Distribution benchmark.
- If your ratio is below 7.0x by more than fifteen percent, start the playbook at diagnose low turnover.
- If you sit above 10.0x, confirm stock-out frequency before declaring victory. See high vs low turnover.