Inventory turnover by industry

79 U.S. industries, highest first · January 2026

Median industry8.7×half are above, half below

Highest185.2×Retail (REITs)

Lowest0.4×Real Estate (General/Diversified)

#	Industry	Inventory turnover	Gross margin	Companies
1	Retail (REITs)	185.2×	78.6%	26
2	Banks (Regional)	122.0×	99.6%	568
3	Real Estate (Operations & Services)	90.9×	32.2%	54
4	Business & Consumer Services	71.9×	33.4%	155
5	Engineering/Construction	64.9×	15.5%	48
6	Education	59.2×	45.8%	32
7	Hospitals/Healthcare Facilities	58.5×	39.1%	31
8	Environmental & Waste Services	57.5×	36.3%	53
9	Entertainment	57.1×	41.4%	92
10	Oil/Gas (Production and Exploration)	49.8×	57.2%	142
11	Telecom Services	49.0×	58.8%	39
12	Restaurant/Dining	46.1×	32.2%	64
13	Broadcasting	40.2×	38.1%	24
14	Telecom (Wireless)	38.8×	63.0%	12
15	Green & Renewable Energy	38.6×	55.2%	15
16	Hotel/Gaming	38.2×	60.9%	63
17	Oil/Gas Distribution	37.3×	43.4%	23
18	Utility (Water)	34.7×	59.0%	14
19	Transportation (Railroads)	34.4×	51.0%	4
20	Air Transport	32.7×	24.8%	23
21	Healthcare Support Services	29.0×	12.1%	104
22	REITs	22.3×	58.1%	190
23	Publishing & Newspapers	20.8×	50.4%	19
24	Retail (Grocery and Food)	18.2×	26.3%	15
25	Advertising	17.9×	36.2%	52
26	Computers/Peripherals	16.9×	38.4%	36
27	Food Wholesalers	15.1×	15.4%	13
28	Shipbuilding & Marine	14.9×	27.1%	8
29	Power	14.7×	43.6%	46
30	Oil/Gas (Integrated)	13.6×	36.1%	4
31	Beverage (Soft)	12.4×	54.7%	27
32	Computer Services	12.3×	24.3%	64
33	Oilfield Services/Equipment	12.2×	11.1%	97
34	Utility (General)	12.0×	44.2%	14
35	Retail (General)	11.5×	33.2%	23
36	Diversified	11.1×	25.8%	20
37	Auto & Truck	10.1×	10.4%	33
38	Telecom Equipment	9.9×	58.1%	57
39	Healthcare Information and Technology	9.6×	48.3%	115
40	Household Products	8.7×	51.0%	110
41	Drugs (Biotechnology)	8.3×	60.8%	496
42	Auto Parts	8.0×	15.8%	35
43	Precious Metals	7.8×	55.0%	56
44	Food Processing	7.5×	23.2%	78
45	Office Equipment & Services	7.5×	41.4%	14
46	Packaging & Container	7.4×	24.3%	19
47	Electronics (Consumer & Office)	7.3×	38.8%	8
48	Building Materials	7.3×	30.9%	41
49	Recreation	7.3×	39.8%	49
50	Paper/Forest Products	7.1×	17.1%	6
51	Real Estate (Development)	6.9×	35.3%	14
52	Semiconductor	6.7×	59.0%	66
53	Drugs (Pharmaceutical)	6.4×	71.7%	228
54	Chemical (Basic)	6.4×	9.3%	29
55	Shoe	6.1×	43.9%	11
56	Machinery	6.0×	37.5%	105
57	Retail (Automotive)	6.0×	22.0%	34
58	Farming/Agriculture	6.0×	13.1%	35
59	Retail (Distributors)	6.0×	30.6%	62
60	Retail (Building Supply)	6.0×	34.2%	14
61	Coal & Related Energy	5.8×	14.9%	16
62	Chemical (Specialty)	5.7×	35.1%	59
63	Healthcare Products	5.7×	54.0%	204
64	Steel	5.6×	12.3%	19
65	Electronics (General)	5.5×	26.8%	114
66	Furn/Home Furnishings	5.5×	30.3%	27
67	Retail (Special Lines)	5.3×	35.3%	94
68	Apparel	5.2×	56.9%	35
69	Beverage (Alcoholic)	5.1×	47.0%	14
70	Chemical (Diversified)	5.0×	15.3%	4
71	Electrical Equipment	4.9×	31.8%	112
72	Metals & Mining	4.9×	34.7%	73
73	Semiconductor Equipment	4.8×	46.3%	31
74	Construction Supplies	4.8×	25.5%	40
75	Tobacco	4.7×	64.3%	10
76	Rubber & Tires	4.6×	18.0%	3
77	Aerospace/Defense	3.5×	17.5%	79
78	Homebuilding	1.6×	22.7%	30
79	Real Estate (General/Diversified)	0.4×	51.2%	12

Source: Aswath Damodaran, NYU Stern, January 2026. Aggregates over U.S. public companies.

Frequently asked questions

What is a good inventory turnover?

Across these 79 industries the median is 8.7×, from Real Estate (General/Diversified) (0.4×) to Retail (REITs) (185.2×). These are public companies. Private businesses sell for far less: on average about 2.7× seller’s discretionary earnings (BizBuySell, Q2 2026).

How is the inventory turnover calculated?

Sales divided by inventory: about how many times a year stock turns into sales. Industries with almost no inventory are left out. Each figure is an aggregate: the total across every company in the industry, so larger companies weigh more than in a simple average.

Where does the data come from?

Aswath Damodaran’s datasets at NYU Stern, January 2026, covering thousands of U.S. public companies in 94 industries. It is refreshed each January.

Why are 15 industries missing?

The source has no figure for them on this measure.