| Lesson Plan |
| Grade: |
Date: 04/03/2026 |
| Subject: Accounting |
| Lesson Topic: make recommendations and suggestions for improving profitability and working capital |
Learning Objective/s:
- Describe how to calculate key profitability and working‑capital ratios.
- Analyse ratio results against industry benchmarks and historical trends.
- Apply appropriate recommendations to improve profitability and working capital.
- Evaluate the impact of suggested actions on ROCE and liquidity.
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Materials Needed:
- Projector and screen
- Whiteboard and markers
- Printed ratio worksheets
- Calculator or spreadsheet software
- Sample financial statements (case study)
- Handout of recommendation checklist
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Introduction:
Begin with a quick poll: which financial figures most influence a business’s profit? Review prior learning on basic ratio formulas, then outline today’s success criteria – students will interpret ratio analysis and propose realistic strategies to boost profitability and working capital.
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Lesson Structure:
- Do‑now (5') – calculate Gross Profit Margin and Net Profit Margin from a short data set.
- Mini‑lecture (10') – recap profitability and working‑capital ratios and show interpretation guidelines.
- Guided practice (15') – groups analyse a case study’s ratio table, identifying strengths and weaknesses.
- Recommendation workshop (15') – each group selects two improvement areas, uses the checklist, and prepares brief recommendations.
- Gallery walk & peer feedback (10') – groups display recommendations; classmates leave comments.
- Whole‑class debrief (5') – teacher summarises key take‑aways and links to upcoming cash‑flow forecasting lesson.
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Conclusion:
Summarise how ratio interpretation leads to targeted actions for profit and liquidity. For the exit ticket, students write one recommendation they would implement first and why. Assign homework to draft a one‑page improvement plan for a different business scenario.
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