Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business
Lesson Topic: rate of inventory turnover: calculation and interpretation
Learning Objective/s:
  • Describe the purpose and meaning of the inventory turnover ratio.
  • Calculate inventory turnover and inventory days using COGS and average inventory.
  • Analyse the ratio to assess inventory efficiency and compare with industry benchmarks.
  • Evaluate the limitations of the ratio and discuss implications for business decisions.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed worksheet with sample income‑statement and balance‑sheet figures
  • Scientific calculators
  • Excel template for turnover calculations
  • Handout of formula sheet and interpretation guide
 Introduction:
Begin with a quick poll asking how often students think a shop should restock its shelves. Link their ideas to the concept of inventory efficiency and state that today they will learn to measure this formally. Explain that success will be shown by correctly calculating the turnover ratio and interpreting what the result means for a business.
Lesson Structure:
  1. Do‑now (5'): Students compute average inventory from given opening and closing figures on the worksheet.
  2. Mini‑lecture (10'): Present the turnover formula and step‑by‑step calculation using projected slides.
  3. Guided practice (15'): Whole‑class work through the provided example, filling in a table of COGS, average inventory, turnover ratio and inventory days.
  4. Pair activity (10'): Learners calculate turnover and inventory days for a new case study and record their results in the Excel template.
  5. Interpretation discussion (10'): Groups analyse their ratios, compare with an industry benchmark and discuss possible strengths or weaknesses.
  6. Exit ticket (5'): Each student writes one business implication of a high (or low) inventory turnover ratio.
Conclusion:
Recap the key steps: find COGS, determine average inventory, compute the ratio and translate it into inventory days. Collect exit tickets to gauge understanding and assign a homework worksheet requiring another calculation plus a short paragraph on how seasonality might distort the ratio.