CMA’s current poll “What methods do you use to measure receivables?” is receiving lots of write-ins for the CEI from Credit Research Foundation (CRF) http://poll.fm/27h9q
From the CRF:
Collection Effectiveness Index (CEI)
Definition: This percentage expresses the effectiveness of collection efforts over time. The closer to 100 percent, the more effective the collection effort. It is a measure of the quality of collection of receivables, not of time.
|Beginning Receivables + (Credit Sales/N*) – Ending Total Receivables
Beginning Receivables + (Credit Sales/N*) – Ending Current Receivables
|*N = Number of Months or Days|
CRF has a great article Performance Measures for Credit, Collections and Accounts Receivable that describes the major measurements and their purpose with formulas.