For successful business management, an essential foundation is the information obtained through financial statements. Financial statements provide relevant and reliable information about the company's condition, potential issues and business performance. They are the basis for making management decisions and they are important for investors, creditors, suppliers and other users. Financial statements show the company's assets, their sources, changes over time and business performance. Interpreting the data from the statements is crucial for understanding them. Financial statement analysis, which includes horizontal and vertical analysis and finance ratios, helps in understanding the financial statements. In addition, it enables a deeper understanding of the company's situation and identification of its strengths, weaknesses, opportunities and challenges. Jadranka turizam d.o.o. is one of the leading hotel companies in the Republic of Croatia. In this study, the company’s performance was observed from 2018 to 2021, where a positive financial result was achieved only in 2021. The loss in 2020 was particularly pronounced due to the emergence of the COVID-19 pandemic. However, after a challenging year, the company has improved its financial result by increasing savings. The recovery of the tourism sector, after the reduction of restrictions and travel limitations contributes to higher tourist demand as well as positive financial outcome. This situation has had significant impact on the improvement of profitability and liquidity ratios. Leverage ratios have remained relatively stable and satisfactory, indicating that the company primarily finances its assets from own sources during the observed period.