# CEI

> CEI is a liquidity and working-capital metric, calculated as (Opening AR + Credit sales − Closing total AR) ÷ (Opening AR + Credit sales − Closing current AR). Percent of collectible AR actually collected; 100% is perfect. See order to cash.

Source: https://lopifi.com/glossary/cei
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is cei?** CEI is a liquidity and working-capital metric, calculated as (Opening AR + Credit sales − Closing total AR) ÷ (Opening AR + Credit sales − Closing current AR).

## Formula

`(Opening AR + Credit sales − Closing total AR) ÷ (Opening AR + Credit sales − Closing current AR)`

## Also known as

- Collection effectiveness index

## Note

Percent of collectible AR actually collected; 100% is perfect. See order to cash

- **Category:** Liquidity & working capital
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** credit