Annual financial statements are the central and main source of information on the performance and financial position of each business entity, they integrate the most complete data on the operations of business entities that require clear comprehensibility as the key to management. They are compiled on the basis of objective, valid, documented data in accordance with accounting standards, principles and rules. The presentation, correct interpretation and explanation of the meaning of the basic financial statements represents a clear picture of the current and future course of business. The business capabilities of the selected business entity are assessed and evaluated through complex accounting procedures of financial statement analysis. Showing the financial position, the very connection of business decision-making and analysis, showing all business activities relevant for making business decisions. The analysis of basic financial statements is of great importance to internal and external users as a basis for successful management and survival in today's changing business environment in order to ensure the conditions necessary for continuous development in the market. We determine the success and sustainability of a business entity by arguing the key elements of financial statement analysis. By mastering, using, applying and processing past business events based on the analysis of financial statements. Presentation of relevant and reliable business information based on business, investment and financial activity and their analysis. Presentation of the financial position, interdependence, valuation methods, forms and explanations of the basic elements of financial statements, as well as business analysis based on the theoretical and practical part.