text: In general, the Gouy-Stodola theorem is used to quantify irreversibilities in a system and to perform exergy analysis. That is, it allows one to take a thermodynamic system and better understand how inefficient it is (energy-wise), how much work is lost, how much room there is for improvement and where. The second law of thermodynamics states, in essence, that the entropy of a system only increases. Over time, thermodynamic systems tend to gain entropy and lose energy (in approaching equilibrium): thus, the entropy is "somehow" related to how much exergy or potential for useful work a system has. The Gouy-Stodola theorem provides a concrete link. For the most part, this is how the theorem is used - to find and quantify inefficiencies in a system.