Money · RATIOXA GLOSSARY

Purchasing power

Amount of goods and services that a sum of money can buy.

01

Simple definition

Amount of goods and services that a sum of money can buy.

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

A higher nominal end value can still mean less real purchasing power under inflation.