Key Performance Indicator Definitions


Annual Credit Sales

Total invoiced receivable for the 12-month period reported. Include freight, taxes, and containers.


Beginning Receivables

Receivables balance at beginning of 12-month period being reported. Consider all domestic open invoices and notes receivable, deferred billings or datings, past-due billings, credits, unapplied cash, suspense accounts, charge backs, invoice deductions, bankruptcies, claims, disputes, litigation and accounts placed for collections. (If items such as bankruptcies and claims have already been written off to bad debt, do not add them back into the AR for this data). Companies with leasing arrangements should report only the portion of those leases that have been billed.


Ending Total Receivables

Receivables balance at end of 12-month period being reported.


Ending Current Receivables

Portion of domestic open accounts and notes not yet due as of end of 12-month period according to terms, include datings and deferred items.


ADD (Average Days Delinquent)

DSO - Best Possible DSO.


Best Possible DSO

(Ending Current Receivables * 365) / Annual Credit Sales


CEI (Collection Effectiveness Indicator)

(Beginning Receivables + (Annual Credit Sales/12) - Ending Total Receivables)    

_____________________________________________________________________     x 100

(Beginning Receivables + (Annual Credit Sales/12) - Ending Current Receivables)


DSO (Days Sales Outstanding)

(Ending Total Receivables * 365) / Annual Credit Sales


Percent Current

Ending Current Receivables / Ending Total Receivables


Receivables Turnover Rate

Annual Credit Sales / Ending Total Receivables