I am probably going to botch this. But all of these statistics, as well as assessing improvement, are based on the average earnings of the total TB crop on a year by year basis.
AEI looks at how much the stallion’s get earned against the total crop of TBs for the year.
CI takes a specific stallion’s offspring and only compares their earnings against the earnings of all foals from the mares in his book, instead of the entire population.
1.0 is average. If a CI or AEI is 1.0, it means those horses were averaging the average earnings for all TBs of the crop.
Below 1.0 means the horses, on average, are earning less than the average TB for those given years.
Above 1.0 is good— that means you are earning more than the average TB.
If the stallion has an AEI of 3.0, his offspring are earning three times what their peers are earning.
But if the CI is also 3.0, that stallion isn’t improving the mares: he was getting good mares who were already producing those types of earners. If the CI is 2.0, that stallion was getting good mares and his get were doing worse than the average foal out of those mares.
But like you point out, all of these statistics are influenced by the size of the book. Small book stallions’ statistics can fluctuate wildly. The same goes for stallions who are early in their careers.
Breeding TBs is really thankless if you don’t live in a “hub.” I can commiserate with your plight. I tried for several years in Tennessee and would have been better off lighting the money on fire. I was even driveable to Lexington, but the savings I recouped by not boarding in KY were spent on fuel and trying to recover mistakes made with bad veterinary care. Now that I’m back in MD, I intend to give it another go, but not until I’m in a more stable financial state. If you aren’t starting with a large fortune, it’s easy to get over your head in a hurry.