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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

Collection Effectiveness Index (CEI) CEI compares receives collected in a given time period against the receivables available in that same period. Similar to DSO, this cash application KPI offers a broad measure of how effective your collection efforts are. (DSO

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Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

Gaviti

Collection Rate The collection rate, or Collection Effectiveness Index ( CEI ) is a measure of how well you’re collecting outstanding payments within a specific period. It’s a comparison of how much you were owed at the beginning of the period versus how much you actually collected during that same period.

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Evidence It's Time to Adjust Your Collection Practices

Your Virtual Credit Manager

If a significant portion of your receivables are in the "overdue" categories (e.g., 30, 60, 90+ days past due), it suggests that your collection efforts might not be keeping up with customer payment schedules. Your Collections Effectiveness Index is Low : If you are measuring your CEI every month, any decline should be a red flag.

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