The analysis of financial statements is part of the overall business analysis. It is carried out with the aim of getting to know and understanding the data from the financial statements in more detail, and its final goal is to provide information for decision-making, management, or the fulfillment of set goals. Financial analysis is carried out by both internal and external users, and it is carried out not only for economic entities (d.d., d.o.o., etc.), but it is also widely used in local and (regional) regional self-government units (municipalities, cities, counties). This paper is focused precisely on the financial analysis of the City of Ploče, which was conducted based on the available consolidated and audited financial statements for the three-year period (2021-2023). The concrete analysis and interpretation of the obtained results was preceded by the theoretical elaboration of both financial statements and possible forms of their analysis, as well as the legal framework that regulates budget accounting, given that it is a prerequisite for the correct presentation of transactions included in financial statements. The paper concluded that the City of Ploče has a favorable capital structure, efficiently uses its assets and achieves favorable financial results with certain deviations in 2023, the causes of which could not be determined from the highlighted reports.