Financial statement analysis reviews financial information found on financial statements to make informed decisions about the business. The information obtained from this analysis can benefit decision-making for internal and external stakeholders and can give a company valuable information on overall performance and specific areas for improvement. The main function of financial analysis is the pinpointing of the strength and weaknesses of a business undertaking by regrouping and analysis of figures contained in financial statements, by making comparisons of various components and by examining their content. The instruments of analysis of financial statements are horizontal and vertical analysis and analysis using indicators. The manufacturing industry makes up a large part of the total world production of goods and services; and one of the important branches of the processing industry is the production of paper and paper products. The practical part of the paper will analyze the financial statements of Violeta d.o.o., Lipa Mill kuverta d.o.o. i C Pakiranje d.o.o. and then the safety and business success of these companies will be also analyzed. An analysis was also performed through aggregate business valuation models of the BEX index and Altman’s Z Score model. These analyzes were conducted for a three-year period, for 2017, 2018 and 2019. The analysis of financial statements, indicators and aggregate models creates a conclusion about the successfully or unsuccessfully of the company's operations.