Fish

Key Takeaways

• FISH describes unsold inventory due to inattention or obsolescence.
• FISH is a play on FIFO and LIFO accounting methods.
• Companies with FISH problems have low turnover rates.
• Stagnant inventory ties up capital and storage space.
• FISH doesn't specify why products remain unsold.

What Is First In, Still Here (FISH)?

First In, Still Here (FISH) is an accounting buzzword that describes when companies have inventory that they're unable to sell. Unlike First In, First Out (FIFO) or Last In, First Out (LIFO), it is not an accounting method, and it signals stagnant stock that can lower turnover, raise storage costs, tie up capital, and weaken investor appeal. How a company deals with FISH can shape performance across industries.

How First In, Still Here (FISH) Impacts Businesses

Companies in a state of First In, Still Here (FISH) accounting tend to have turnover rates that are lower than the industry average. Investors tend to avoid investing in companies that are in a "FISH-like" state because having inventory lying about consumes expensive capital and storage space.

Companies struggling to sell inventory can arise for a variety of reasons. Some issues are seasonal; others are based on changes in buyer preferences. First In, Still Here doesn't point to any particular reason for the inability to move merchandise.