Interpreting the Collection Effectiveness Index involves understanding that a higher CEI indicates more effective collections efforts, while a lower CEI suggests inefficiencies in collecting outstanding receivables. By monitoring CEI over time and comparing it to industry benchmarks, businesses can gauge the success of their collections strategies and identify areas for improvement.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
