Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the meaning and importance of financial efficiency
Learning Objective/s:
  • Describe what financial efficiency means and why it matters for businesses.
  • Calculate and interpret the main efficiency ratios (Inventory Turnover, DIO, Receivables Turnover, DSO, Payables Turnover, DPO, Asset Turnover, WCC/CCC).
  • Analyse how ratio values affect liquidity, profitability and competitive advantage.
  • Evaluate limitations of efficiency ratios and compare results with industry benchmarks.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck with ratio formulas and examples
  • Printed worksheet containing the XYZ Ltd data set
  • Calculator or spreadsheet software
  • Whiteboard and markers
  • Handout summarising formulae and interpretation guide
 Introduction:
Begin with a quick poll: how many students have ever managed a personal budget or inventory? Link this to business asset use and explain that today they will explore how firms turn assets into cash efficiently. Success criteria: students will accurately calculate key efficiency ratios and explain what the results reveal about a company's performance.
Lesson Structure:
  1. Do‑now (5’) – students complete a short budgeting task to activate prior knowledge of cash flow.
  2. Mini‑lecture (10’) – define financial efficiency and introduce the core ratios with formulae on slides.
  3. Guided calculation (15’) – work through the XYZ Ltd example together, projecting each step and checking understanding.
  4. Pair activity (10’) – learners calculate ratios for a second company using the worksheet and discuss interpretations.
  5. Concept mapping (5’) – groups create a quick flow diagram of the Working Capital Cycle on the whiteboard.
  6. Whole‑class debrief (5’) – teacher summarises key take‑aways, addresses limitations and industry benchmarking.
Conclusion:
Recap the main ratios and how they signal liquidity and profitability. Students complete an exit ticket by writing one insight about why a short cash conversion cycle is valuable. For homework, assign practice problems requiring calculation and brief interpretation of efficiency ratios from a new set of accounts.