Business analysis of the company Hrvatski telekom d.d. through financial statements of balance sheet and profit and loss account gives us information about financial and economic strenght of the company. These informations serve as guidelines for the leading managers in making decisions about planning future operations. Managers can see clear picture od the company's position on the market. The analysis is performed using vertical and horizontal method of official financial statements which results in finding out finacial indicators. Financial indicators point the success of company, company's activity, possible added value and potentian bankruptcy. The obtained indicators for company Hrvatski Telekom d.d. clearly indicate the company is liquid and financaly stable. Company is also solvent, although it has increased level of financing from other soucers than its own. The result of that is increased level of indebtedness factors. Given the slight decline in income and in the same time a smaller decline in expenses, economy of the company has fallen slightly because the revenue is lower than the previous period. In conclusion the company should work on reducing cash ga pin order to maintain better business dynamics. Given the enormous capital of the company, EVA shows a relatively poor results because profit cannot cover the share of capital. Potential bankruptcy indicates the need for improvement of the business model or change of business policy. The strategy of Hrvatski Telekom d.d. is based of the qualiy of services, costumer satisfaction and further development of the service. In further analysis will show that Hrvatski Telekom d.d. is one the strongest economic entities in the country and one of the key carrier of the development of Croatian economy.