Financial analysis as a tool for comprehending, leading and managing a business is one of the major tools for entrepreneurs and managers. By understanding and using financial analysis, entrepreneurs and managers analyze the previous business conduct of companies that are the subject of analysis, make business decisions on which market survival depends on, but also make decisions that protect the company from any potential risks. The main indicators on which the financial analysis process is based include the indicators of liquidity, indicators of indebtedness, indicators of activity and indicators of cost-effectiveness. Each category of the mentioned indicators includes several more indicators. This is because one indicator does not include a comprehensive overview of business operations, so the indicators are calculated according to multiple segments and criteria. This way, you can have a more clear insight into the business environment and thus make better business decisions. The subject of financial analysis in this paper are two companies - a student company PUCEZRINSKI j.d.o.o. and the company Chemaco d.o.o. By analyzing these companies the goal is to determine their business status and whether the student company PUCE-ZRINSKI j.d.o.o. can follow the example of the company Chemaco d.o.o. and assume some of their business decisions and policies to improve its work and development. By calculating all the indicators of financial analysis, the business status of the company was determined. Namely, a student company PUCE-ZRINSKI j.d.o.o. is doing really badly, the company does not have any form of property, no receivables from buyers, and its liabilities are higher than the income. At the same time, Chemaco d.o.o. is conducting its business operations well with a positive growth trend. In all the indicator groups the situation is good, most indicators are positive, and those that are marginal are not completely negative and have a positive growth trend. The student company can look up to the competition so as to acquire certain short-term and long-term assets needed for conducting business, determine the duration for the collection of receivables, and increase the revenue through increased sales and by lowering costs.