Financial statements are final documents that show the entire business of the company. Some financial statements show the balance of items on a specific date, while some are oriented towards showing the balance of items throughout the year. Financial statements provide information on the current position, the company's operations during the year and the performance of the business. For a better understanding and monitoring of financial statements over the years, it is necessary to analyze them. Analysis refers to comparing items and calculating certain indicators, all through methods. The methods most often used to analyze financial statements are analysis using indicators, horizontal and vertical analysis, and trend analysis. The theoretical section of the paper discusses the explanation of financial statements and their organizational layout. Also, for a better understanding, it is necessary to know certain relationships that are important for individual financial statements. The second segment of the theoretical portion addresses the techniques employed for conducting financial analysis and the requisite formulas for computation. The final section of the document pertains to the presentation of the financial statements of the company Kamen d.d. Pazin in tabular form, along with the application of financial statement analysis methods on a practical illustration. Through the computation of these indicators, the liquidity, profitability, activity, indebtedness and economy of the company were evaluated. The performed analysis showed the success of the company and its operations in 2019.