Gaviti

APRIL 11, 2024

How much bad debt does the company have, and how has this changed over time? Consider these additional KPIs: Bad debt ratio: This measures the monetary value of receivables you believe you cannot collect. Collection effectiveness index: This measures how well you collect payments from customers.

Bad Debt 98

Bad Debt Credit and Collections Collection Effectiveness Index DSO 98

Your Virtual Credit Manager

AUGUST 29, 2023

30, 60, 90+ days past due), it suggests that your collection efforts might not be keeping up with customer payment schedules. When both sales and DSO are rising, checking your percentages past due will provide a good indicator that collections are lagging. Then multiply the answer by 100 to get a percentage.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

FEBRUARY 21, 2023

If your AR is deteriorating, you better diagnose the problem as quickly as possible so you don’t incur cash flow problems and bad debt losses. Share Collections Effectiveness Index (CEI) The CEI provides a measure of collection effectiveness expressed as a percentage. x 0.95 = 70 percent POI ).

DSO 130

DSO Credit and Collections Collection Effectiveness Index Bad Debt 130