Work out collection efficiency instantly with clear inputs, formula shown and shareable results.
Total collection efficiency divides all cash collected, including arrears, by the current month's demand — so it can exceed 100% in a good recovery month. Current efficiency strips out arrears and is the cleaner measure of book behaviour.
Collection efficiency
Total = (current + arrears collected) / current demand; current = current collected / demand
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.
Because arrears collected from earlier months are added to the numerator but not the denominator.
Both. Total flatters a stressed book, while current efficiency reveals whether new delinquency is forming.