The aim of this diploma thesis is to analyze the financial statements of Pilana Juračak d.o.o. for the year 2019, 2020, and 2021. The basis for the analysis is the financial statements for the specified period. In order to ensure the success and safety of business, management of business and development is assumed. In this context, the task of analyzing the company's operations is to create an information base for management purposes, including all relevant information. The analysis of financial statements represents the process of applying various analytical tools and techniques by means of which data from financial statements are transformed into usable information relevant to management. This paper presents the horizontal and vertical analysis of the balance sheet, as well as the horizontal and vertical analysis of the profit and loss account. The analysis of financial indicators includes: liquidity indicators, indebtedness indicators, activity indicators, economic indicators, profitability indicators. Synthetic financial indicators were also analyzed: Altman's Z-score model, Kralicek's DF indicator. Analysis of reports and indicators of Pilana Juračak d.o.o. it can be concluded that the company should have no problems in further operations.