RATIO ANALYSIS ACCOUNTING LESSON PLAN RELATIONSHIP ONLINE FINANCIAL BASICS CORE HIGH SCHOOL BUSINESS TEACHING LEARNING FORMAT SAMPLE EXAMPLE HELP FORMAL WORK CAREERS SAMPLE STUDENTS FREE PRACTICE TEACHER BUSINESS BOOKKEEPING LIFE SKILLS

 Students learn about financial accounting ratio analysis.

# RATIO ANALYSIS

Topic:  Use ratio analysis to analyze financial statements.

Concept:   An introduction to financial statement analysis using the various ratios on and between the balance sheet and income statement.

Objectives

• Outline importance of analyzing financial statements
• Introduce solvency ratios
• Present rations to determine operational efficiency
• Explain trend analysis using horizontal and vertical analysis

RATIO ANALYSIS LESSON PLAN

Teaching Materials

# Lesson Activity

1. Discuss ratio analysis

° Why is it done?

2. Introduce financial structure analysis

° Debt to equity ratio

° Go through example

3. What do ratios tell us

° discuss that there is no “right” ratio to achieve

° discuss ratio stability

° discuss direction of change in the ratio

4. Introduce solvency ratios

° discuss solvency in general

° go through examples of each ratio

5. Introduce operational efficiency ratios

° discuss what efficiency refers to

° discuss what the term “return” means

° work through examples of each ratio

6. Introduce trend analysis

° present horizontal analysis

° present vertical analysis

Print out the teaching lesson pages and exercise worksheets for use with this lesson:

 RATIO ANALYSIS LESSON This is a lesson and worksheet on ratio analysis. Do you have a recommendation for an enhancement to this accounting lesson, or do you have an idea for a new lesson?  Then leave us a suggestion. Back to more Accounting and Bookkeeping Lessons   More Career, Job, and Business Skills Lessons         To teach and learn money skills, personal finance, money management, business, careers, and life skills please go to the Money Instructor home page.

 Accounting Ratios Analyzing Accountant Lesson Plan - Simple Basic rules professional template guide etiquette lesson - High School Student - Secondary education - Adults - Teens - Teenagers - Instruct Theme Unit - Secondary Education - Middle School - Young Adults - Classroom Review - Career Accounting Education