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Which subject	Business
What topic	Financial Ratios BTEC Level 3 Business
What length (min)	30
What age group	College
Class size	20
What curriculum
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Prepare slide templates
Number of slides	5
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Lesson plan

Lesson Plan: Financial Ratios

Subject

Business

Topic

Financial Ratios - BTEC Level 3 Business

Grade/Age Group

College (Age 16-19)

Duration

30 minutes

Number of Students

20

Objectives

• Understand the definition and purpose of financial ratios.
• Identify key financial ratios used in business analysis.
• Calculate and interpret at least three different financial ratios.
• Apply financial ratios to evaluate a company's financial health.

Materials

• Whiteboard and markers
• Projector (for presentation slides)
• Handouts with definitions of financial ratios
• Worksheets for calculation practice
• Access to financial statements (case studies)

Lesson Structure

Step Number	Step Title	Length	Details
1	Introduction to Financial Ratios	5 minutes	Brief overview of financial ratios and their importance in business.
2	Key Financial Ratios	10 minutes	Presentation of key ratios: Liquidity Ratios, Profitability Ratios, and Efficiency Ratios. Provide definitions and examples.
3	Calculating Ratios	10 minutes	Guided practice on calculating ratios using fictional financial statements. Introduce worksheets for student practice.
4	Interpreting Ratios	3 minutes	Explain how to interpret calculated ratios and what they indicate regarding financial health.
5	Summary and Q&A	2 minutes	Recap key concepts discussed. Open the floor for any final questions on the topic.

Homework

• Complete a worksheet calculating and interpreting additional financial ratios based on provided financial statements. Homework will be collected and checked for understanding without requiring students to present their work in class.

Assessment

• Informal assessment through class participation and completion of worksheets.
• Review of the homework will provide insights into student understanding and areas needing clarification.

Curriculum Links

• This lesson aligns with the BTEC Level 3 Business syllabus, focusing on financial analysis and decision-making.

Lesson script