Hardware SaaS inventory turnover.
Component lead-times and appliance assortment depth set a 90-day cycle.
Where the 4.0x median comes from
The 4.0x figure is the cross-firm median for hardware saas as of 2026-06-20, derived from the NYU Stern working-capital dataset maintained by Aswath Damodaran. Top-quartile operators in this category clear 6.0x; the bottom quartile sits at 2.8x.
At the median, average inventory equals roughly 91 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 6.0x top-quartile mark before setting a working-capital target.
Benchmark band
The band below plots a hypothetical 4.0x 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 hardware saas median has moved from 3.6x in the earliest comparable year to 4.0x in the latest pull, a gradual lift of 0.4 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 Hardware SaaS benchmark.
- If your ratio is below 4.0x by more than fifteen percent, start the playbook at diagnose low turnover.
- If you sit above 6.0x, confirm stock-out frequency before declaring victory. See high vs low turnover.