The analysis of financial statements shows business events and features of its parts to understand the accounting processes and to better interpret company data. In the final work, some balance sheet items and profit and loss account were analyzed with the help of horizontal analysis, vertical analysis and financial indicators. Financial indicators are divided into four groups, named profitability ratios, ratio of asset utilization, liquidity ratio and debt ratio. The balance sheet consists of assets (assets) and liabilities (equity and liabilities) and presents the status of the enterprise on a specific date. Income statement shows the volume of income and expense as well as the result achieved over a given period, usually one year. Company Hrvatske šume d.o.o. in the period from 2013 to 2014, by horizontal analysis determines the general growth trend and provides insight into the same items over two or more periods, and the key factor is time. By vertical analysis, changes in the business structure during one year were explained. The profitability ratio shows the desired results and the company has insight into profitability and asset management. Also, the liquidity ratio has positive and growing effects, whereby the company always has cash or assets that can easily be translated into cash. The next two ratios, the ratio between the use of assets and the ratio of borrowing used indicate that the company is neither indebted or lendered with long-term loans in the observed period, is funded from its own sources, and from year to year records the growing turnover of assets, receivables, inventories, etc.