Energy · RATIOXA GLOSSARY

Degradation rate

Assumed annual decline in production or usable capacity.

01

Simple definition

Assumed annual decline in production or usable capacity.

02

Why it matters

This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.

03

Worked example

2% annually leaves about 81.7% after ten years.