COLLECTION EFFECTIVENESS INDEX (CEI): 
Online CEI Ratio Calculator
Collection Effectiveness Index compares ‘what was collected’ out of ‘what was available to collect’ in a given period of time. The closer the CEI is to 100% the higher is the degree of collection effectiveness. In broader terms CEI accesses the percentage of open receivables a credit granting organization is able to recover/resolve/negotiate/accomplish within a specific period of time.
Formula for a given period:
Beginning Receivables + Monthly Credit Sales - Ending Total Receivables X 100
Beginning Receivables + Monthly Credit Sales - Ending Current Receivables
Where Monthly Credit Sales = Credit Sales/N
Where N = Number of Months
Formula for a 1 year period:
Beginning Receivables + (Credit Sales) - Ending Total Receivables X 100
Beginning Receivables + (Credit Sales) - Ending Current Receivables
| Illustration: CEI Calculation | |||||||
| Sample ATB | |||||||
| Sales | A/R | Current | 31-60 | 61-90 | 90+ | ||
| (on Credit terms) | Balance | ||||||
| Jan | 3,390 | 6,200 | 3,345 | 1,795 | 1,000 | 60 | |
| Feb | 3,610 | 6,000 | 3,560 | 1,550 | 825 | 65 | |
| Mar | 3,890 | 6,340 | 3,590 | 1,800 | 900 | 50 | |
| Total (Jan-Mar) | 10,890 | ||||||
CEI for the period Jan to March (3 Months):
Period = N = 3 months = 3
Credit Sales = 10,890
Beginning Receivables = 6,200
Ending Total Receivables = 6,340
Ending Current Receivables = 3,590
CEI = 55.9%