This thesis focuses on the analysis of the financial statements of the French company L'Oréal S.A., a global leader in the cosmetics industry, for the period from 2020 to 2022. Through the application of horizontal and vertical analysis of the balance sheet and income statement, the thesis provides a comprehensive insight into the financial condition and operational efficiency of the company. Special emphasis is placed on the company's performance in the context of increased inflation in the global economy, highlighting how L'Oréal has adapted its operations in such an environment. By using key financial indicators, the analysis covers L'Oréal's liquidity, profitability, solvency, and investment attractiveness. The thesis relies on methodologies of analysis and synthesis, comparative analysis, inductive and deductive methods, and secondary data collected from relevant literature and official financial reports of the company. The analysis underscores the importance of structured financial statements and financial indicators as tools for making strategic decisions by management and investors during the observed period. L'Oréal has successfully managed its finances and maintained its position as a global leader in the cosmetics industry, despite the challenges posed by global inflation and changing market conditions. The financial statements and indicators reveal strong profitability and stability of the company, with a focus on innovation and sustainability. The horizontal and vertical analysis indicates a positive recovery in 2022, while emphasizing L'Oréal's efficiency and resilience. Although there are areas for improvement, such as liquidity, the overall picture shows that L'Oréal successfully balances maintaining stability with continuous growth, reaffirming its leading role in the industry.