The purpose of this thesis was to analyze the financial analysis of two companies in forest industry and examined the financial condition of the companies with the help of financial statement analysis where financial ratio analysis was used. The companies were selected based on the same number of employees and turnover. The aim of the thesis was to examine the key figures formed from the financial statements and what they can be used to deduce from the company's financial situation. In addition, it was examined whether exports, the price of market cellulose, investments and inflation in 2016–2019 had affected the companies' financial statements.

Based on the ratios of the companies selected for the study, the profitability, solvency and liquidity of the companies were analyzed. The ratios of the companies were also compared with each other and with the medians of the industry for the corresponding period. In addition, the financial statements of companies for 2016-2019 were examined.

Based on the study, the financial conditions of the target companies in 2016-2019 were revealed and how they ranked compared to the median of the industry. The study also found that changes in the economic situation had affected the key figures for companies. When the economic situation was better in 2017 and 2018, it had a positive impact on companies’ key figures. In 2019, when the foreign trade in the forest industry and the price of market cellulose started to fall, it was reflected, for example, in the decline in the operating profit margin of companies. Both companies were solvent during the period under review and had been able to pay dividends and make investments.