What is the Collection Effectiveness Index?

Collection Effectiveness Index (CEI) measures the percentage of accounts receivable that was available for collection during a period and was actually collected. It compares amount collected with amount available for collection.

What is the CEI formula?

CEI = ((Beginning AR + Credit Sales − Ending Total AR) ÷ (Beginning AR + Credit Sales − Ending Current AR)) × 100. The numerator is the amount collected. The denominator is the amount available for collection.

What is ending current accounts receivable?

Ending current AR is the portion of ending receivables that is not yet past due—balances still within payment terms. Ending total AR includes both current and past-due balances. Current AR cannot be greater than total AR.

How is CEI different from DSO?

DSO estimates how many days of credit sales remain tied up in receivables. CEI estimates what share of collectible receivables was collected in the period. DSO is expressed in days; CEI is a percentage. Use both for a fuller view of collections.

What does a higher CEI mean?

A higher CEI generally means a greater percentage of receivables available for collection was collected during the period. Business mix, terms, write-offs, and seasonality can affect interpretation—there is no universal “good” or “poor” score.

What if the amount available for collection is zero?

CEI is not defined when the denominator is zero or negative. Enter beginning AR, credit sales, and ending current AR for the same period so that some receivables were available to collect.

Collection Effectiveness Index Calculator

See what percentage of collectible receivables you collected during the period.

Currency

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Beginning accounts receivable

Outstanding receivables at the start of the period.

Credit sales during the period

Credit sales for the same period (after returns and allowances if you use net sales).

Ending total accounts receivable

All outstanding receivables at period end, including past-due balances.

Ending current accounts receivable

Ending AR that is not yet past due—still within payment terms. Cannot exceed ending total AR.

Collection Effectiveness Index

92.3%

You collected $480,000.00 of $520,000.00 available for collection.

A higher CEI generally means a greater percentage of collectible receivables was collected during the period. Business circumstances can affect how you interpret the result.

CEI = ($480,000.00 ÷ $520,000.00) × 100 = 92.3%

Amount collected: $480,000.00
Amount available for collection: $520,000.00
Uncollected eligible receivables: $40,000.00
Collection Effectiveness Index: 92.3%

Compare with the DSO Calculator or browse all calculators.

What is Collection Effectiveness Index?

Collection Effectiveness Index (CEI) measures how effectively a business collected the accounts receivable that was available for collection during a given period. It answers: of the receivables that could have been collected, what share was collected?

Unlike day-based metrics such as DSO, CEI is a percentage. It focuses on collectible balances rather than how long sales remain outstanding.

The CEI formula

Amount collected = Beginning AR + Credit Sales − Ending Total AR

Amount available for collection = Beginning AR + Credit Sales − Ending Current AR

CEI = (Amount collected ÷ Amount available for collection) × 100

Ending current AR is the part of ending receivables that is still within terms. Subtracting it from beginning AR plus credit sales leaves the pool that was eligible to collect. Subtracting ending total AR leaves what was actually collected.

How to calculate CEI

Enter beginning accounts receivable for the period.
Enter credit sales for the same period.
Enter ending total accounts receivable.
Enter ending current accounts receivable (not past due).
Divide amount collected by amount available, then multiply by 100.

Example: Beginning AR $100,000, credit sales $500,000, ending total AR $120,000, ending current AR $80,000.

Amount collected = $100,000 + $500,000 − $120,000 = $480,000

Amount available = $100,000 + $500,000 − $80,000 = $520,000

CEI = ($480,000 ÷ $520,000) × 100 ≈ 92.3%. Uncollected eligible receivables = $40,000.

What CEI measures

CEI measures collection of receivables that were available to collect—excluding ending balances that are still current. A higher CEI generally indicates that a greater percentage of collectible receivables was collected during the period.

Do not treat CEI as a letter grade. Industry terms, customer mix, write-offs, and seasonality can all change how you read the same percentage. Track CEI over time with consistent inputs for the most useful signal.

CEI vs. DSO

Days Sales Outstanding (DSO) estimates how many days of credit sales remain in accounts receivable. Collection Effectiveness Index estimates what share of available receivables was collected. One is a time-based stock measure; the other is a period collection percentage.

Use the DSO Calculator when you want days outstanding. Use this calculator when you want the percentage of collectible AR that was collected. Many teams review both.

Why businesses track collection effectiveness

CEI isolates collection results from receivables that were not yet due. That makes it useful when ending AR includes a large current balance that should not be counted against collection performance. Tracking CEI alongside DSO, aging, and turnover helps separate timing, aging mix, and collection yield.

Frequently asked questions

What is the Collection Effectiveness Index?: Collection Effectiveness Index (CEI) measures the percentage of accounts receivable that was available for collection during a period and was actually collected. It compares amount collected with amount available for collection.
What is the CEI formula?: CEI = ((Beginning AR + Credit Sales − Ending Total AR) ÷ (Beginning AR + Credit Sales − Ending Current AR)) × 100. The numerator is the amount collected. The denominator is the amount available for collection.
What is ending current accounts receivable?: Ending current AR is the portion of ending receivables that is not yet past due—balances still within payment terms. Ending total AR includes both current and past-due balances. Current AR cannot be greater than total AR.
How is CEI different from DSO?: DSO estimates how many days of credit sales remain tied up in receivables. CEI estimates what share of collectible receivables was collected in the period. DSO is expressed in days; CEI is a percentage. Use both for a fuller view of collections.
What does a higher CEI mean?: A higher CEI generally means a greater percentage of receivables available for collection was collected during the period. Business mix, terms, write-offs, and seasonality can affect interpretation—there is no universal “good” or “poor” score.
What if the amount available for collection is zero?: CEI is not defined when the denominator is zero or negative. Enter beginning AR, credit sales, and ending current AR for the same period so that some receivables were available to collect.

Compare days outstanding with the DSO Calculator, aging buckets with the AR Aging Calculator, turnover with the Accounts Receivable Turnover Calculator, and days to collect with the Average Collection Period Calculator. Check a single invoice with the Days Past Due Calculator.