Several fundamental concepts with respect to the second-law analysis (SLA) of the turbulent flows in gas turbines are discussed in this study. Entropy and exergy equations for compressible/incompressible flows in a rotating/non-rotating frame have been derived. The exergy transformation efficiency of a gas turbine as well as the exergy transformation number for a single process step have been proposed. The exergy transformation number will indicate the overall performance of a single process in a gas turbine, including the local irreversible losses in it and its contribution to the exergy obtained the combustion chamber. A more general formula for calculating local entropy generation rate densities is suggested. A test case of a compressor cascade has been employed to demonstrate the application of the developed concepts.