Math Savvy: Selling It! Inventory Turnover Ratio

This lesson plan teaches and reinforces mathematics concepts within the context of the Business Management and Administration career cluster.  It is presented in the form of a PowerPoint presentation for use in the classroom accompanied by the teacher notes.

Author(s) Organizational Affiliation
CORD Communications, Inc.
Publication Year
Resource Type
Number of Pages
Target Audience

One of the many ratios that businesses use to analyze and improve its profitability is the Inventory Turnover Ratio. The PowerPoint presentation and accompanying Teacher Notes establish the contextual scenario around which the lesson and twelve corresponding problems are built. The lesson follows Nate Smith, a young man who was promoted to Buyer at a music store. In this role, Nate must determine whether or not new sections of the store are selling better or worse than the rest of the store.  Students are asked to think about several possible courses of action.  The case study walks students through the process of examining sales, comparing sales ratios, converting ratios to percentages, and examining costs and income in a ratio known as the Inventory Turnover Ratio. Students then look at the cost of goods sold on the income statement and calculate quarterly inventory turnover for comparison. Finally, students apply the new knowledge from this case study to other businesses.

Benefits and Uses

Students will be able to: (1) Practice calculating ratios and percentages; (2) Work with percentages in decimal form; and (3) Apply ratios and percentages to a business case study.


Resource Notice

This site includes links to information created by other public and private organizations. These links are provided for the user’s convenience. The U.S. Department of Education does not control or guarantee the accuracy, relevance, timeliness, or completeness of this non-ED information. The inclusion of these links is not intended to reflect their importance, nor is it intended to endorse views expressed, or products or services offered, on these non-ED sites.

Please note that privacy policies on non-ED sites may differ from ED’s privacy policy. When you visit, no personal information is collected unless you choose to provide that information to us. We do not give, share, sell, or transfer any personal information to a third party. We recommend that you read the privacy policy of non-ED websites that you visit. We invite you to read our privacy policy.