Collection Effectiveness Index Calculator
Measure how well you collect what is collectable. Enter your beginning receivables, credit sales, ending total receivables, and ending current receivables, and get the CEI as a percentage.
Not yet past due
The formula
- CEI = (beginning receivables + credit sales − ending total receivables) ÷ (beginning receivables + credit sales − ending current receivables) × 100
Example. With $100,000 beginning receivables, $400,000 of credit sales, $120,000 ending total receivables, and $90,000 ending current receivables: ($100,000 + $400,000 − $120,000) ÷ ($100,000 + $400,000 − $90,000) × 100 = 92.7%.
Things to check
- Current receivables are invoices not yet due at the end of the period. Total receivables include the past-due ones too.
- A CEI near 100% means you collected nearly everything that came due. Over 80% is commonly considered good.
- Unlike days sales outstanding, CEI is not distorted by sales growth, which makes it better for judging collection effort.
Frequently asked questions
What is the collection effectiveness index?
A percentage showing how much of the collectable receivables you collected during a period. It judges the collections process, not the sales.
What is a good CEI?
Over 80% is commonly cited as good, and the closer to 100% the better. Compare it with your own history over time.
What counts as current receivables?
Invoices that are not yet past due at the end of the period. Anything past due is in total receivables only.
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Calculators give estimates from the numbers you enter. They are not tax, legal, or accounting advice.