The shipbuilding industry represents a strategically important determinant of development of the entire Croatian industry. There is a great domination of Asian countires such as China, South Korea and Japan in the global shipbuilding industry. The reason for that can be found in the fact that those countries invest in their shipbuilding technology and reseach and development, or that they have a cheap work force. Compared to the foreign countries, Croatian shipbuilding has its advantages and disadvantages, but also a lot of opportunities that Croatian shipyards can use to stimulate the development of the industry. The shipbuilding sector is the biggest beneficiary of the state aid that the Republic of Croatia is distributing and the State is also the biggest guarantor for the loans of the ULJANIK Group. ULJANIK Shipyard JSC In Bankrupcy and 3.MAJ Shipyard JSC, who are both under control of the ULJANIK Gruop, are among the five largest shipyards in Croatia. The Group is facing a big business crisis and development gap in the last few years which can be seen in the results of the analysis of the financial situation from 2012 to 2017. The analysis was performed using the vertical and horizontal analysis of the ULJANIK Group's consolidated financial statements - the balance sheet and profit and loss account and analysis using financial indicators of safety and business performance.