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CEI calculator

Collection effectiveness index: of the receivables that were collectible in the period, how much did you actually collect?

Total AR at the start of the period.

All open AR at the end of the period, current and past due.

Only the part of ending AR that is not yet due.

Collection effectiveness index

—%

Enter the values to see the result.

How it is calculated

CEI = (beginning AR + credit sales − ending total AR) ÷ (beginning AR + credit sales − ending current AR) × 100

The numerator is what you collected (or otherwise cleared) in the period. The denominator is what was collectible: everything you started with plus new sales, minus the part that is still legitimately not due. A CEI of 100% means every collectible dollar was collected.

Where it misleads

  • "Current" must mean the same thing every period. Not yet due, by due date, not invoice date. Changing the definition moves the score without any change in collections.
  • Credits and write-offs count as clearing AR. A write-off or credit memo raises the numerator just like cash does. Look at how much of the movement was cash.
  • Terms change the denominator. CEI works out to 1 minus (past-due AR ÷ collectible AR). Longer terms leave more AR not yet due, which shrinks the collectible base, so the same past-due balance weighs more heavily. Be careful comparing CEI across units with different terms.
  • One period is a snapshot. Trend it monthly alongside DSO. They answer different questions.

Related: CEI · DSO · DSO vs CEI: what each one actually measures