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The Collection Effectiveness Index (CEI) is a key performance metric used in accounts receivable collections. Calculated as a percentage, this metric measures how efficiently the finance organization collects receivables over a given period. A higher CEI indicates stronger collections performance and cash flow management. Unlike Days Sales Outstanding (DSO), which can be skewed by sales volume, CEI provides a precise percentage of available cash collected, making it a preferred collections metric for many finance leaders.

Learn more about CEI and how to calculate it.

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