Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: the impact of business growth on ratio results
Learning Objective/s:
  • Describe why financial ratios are used to assess business performance.
  • Explain how different types of growth affect profitability, liquidity, and solvency ratios.
  • Calculate key ratios before and after growth using provided data.
  • Analyse changes in ratio results and link them to specific growth activities.
  • Evaluate potential risks and benefits of growth based on ratio analysis.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheets with financial data tables
  • Calculator or spreadsheet software
  • Handout of ratio formulas
  • Markers and flip chart
 Introduction:
Begin with a quick poll: “Which ratio do you think changes most when a company expands?” Review prior knowledge of basic profitability and liquidity ratios, then outline that today students will discover how growth reshapes these indicators and how to interpret the results accurately.
Lesson Structure:
  1. Do‑now (5'): Short quiz on ratio definitions and purposes.
  2. Mini‑lecture (10'): Explain why ratios matter and introduce the five ways growth can impact them.
  3. Guided example (15'): Work through Company Alpha’s Year 1 and Year 2 data, calculating GPM, NPM, CR, D/E, and ROCE.
  4. Group analysis (15'): Teams discuss each ratio’s change, link it to specific growth activities, and note any red flags.
  5. Pitfalls discussion (5'): Highlight common misinterpretations of post‑growth ratios.
  6. Checklist completion (5'): Students fill out the “Summary Checklist” to consolidate learning.
Conclusion:
Summarise how growth can improve some ratios while worsening others and stress the need for a balanced view. Students submit an exit ticket stating one ratio that improved and one that deteriorated, with a brief reason for each. For homework, they analyse a real‑world company’s annual report and write a short paragraph on the impact of recent growth on its key ratios.