Lesson Plan

• Describe the purpose of financial ratios and the four main groups (profitability, liquidity, efficiency, gearing).
• Calculate key ratios for two consecutive years using income‑statement and balance‑sheet data.
• Prepare a clear comparison table that displays the calculated ratios side‑by‑side.
• Interpret the changes in ratios and write a concise commentary linking causes and business impact.
• Evaluate the overall financial position and identify areas for further monitoring.

• Projector and screen
• Whiteboard and markers
• Printed worksheets with sample income‑statement and balance‑sheet data
• Calculators
• Computers with spreadsheet software (Excel/Google Sheets)
• Handout of ratio formulas and a checklist for commentary
• Sample commentary sheet for reference

Begin by asking why businesses compare performance across years and how this helps decision‑making. Recall that students already know how to read income statements and balance sheets. Explain that by the end of the lesson they will produce a ratio comparison table and a short commentary that meets a clear checklist.

1. Do‑now (5') – Quick quiz on profit and liquidity concepts to activate prior knowledge.
2. Mini‑lecture (10') – Review the four groups of ratios, key formulas and when each is useful.
3. Guided practice (15') – Students extract required figures from the provided financial statements and calculate each ratio (using calculators or Excel).
4. Table construction (10') – Enter the calculated ratios into a two‑year comparison table, ensuring correct headings and decimal places.
5. Commentary writing (15') – In pairs, draft a brief commentary that identifies changes, suggests reasons, and assesses impact.
6. Whole‑class share & feedback (10') – Volunteers read their commentary; teacher highlights checklist criteria and common errors.
7. Exit ticket (5') – Each student writes one insight gained and one question they still have about ratio analysis.

Recap the step‑by‑step process: data extraction, ratio calculation, table creation, and commentary. Collect exit tickets to gauge understanding and assign homework: complete a ratio comparison and commentary for a new set of financial data using the checklist.