This thesis explores the importance and application of financial statement analysis in making business decisions. Financial statements are a crucial source of information about a company's financial condition, including its profitability, liquidity, and solvency. Through the analysis of these statements, decision-makers can gain deeper insights into the company's performance and trends and assess its financial stability. Various methods and tools for financial statement analysis are defined and examined, including horizontal and vertical analysis, as well as a range of financial indicators.The thesis also presents practical applications of financial analysis through a case study of a company. The aim of this research is to highlight the significance of quality financial analysis as the foundation for making informed business decisions. Through examples and analysis, the thesis demonstrates how financial analysis can provide insights into a company's strengths, weaknesses, risks, and opportunities. Potential challenges and limitations related to financial statement analysis are investigated as well. The findings of this research have practical implications for managers, investors, and other stakeholders in the business environment. They provide knowledge and tools for making better business decisions based on the analysis of financial statements. The importance of transparency and accuracy in financial statements is also emphasized to ensure the reliability of analyses and decisions based on them.