This thesis project examined financial statements of a Finnish nationwide company operating the field of human resources. In this thesis the company is called X Oy. The financial statement analysis is based on the official balance sheets and its goal is to evaluate the company’s profitability, liquidity, solvency and sufficiency of the cash flows. The study also compares the company’s financial data to another company which is operating in a same field. The other company is called Y Oy.

The thesis comprises a combination of a theoretical and empirical part. In the study the financial statement analysis consists of a percentage analysis of the closing of accounts a trend analysis and key ratio analysis. The data is derived from the official balance sheets from 2006 to 2011. In addition, a cash flow calculation is provided.

The percentage and trend analysis show that the company’s turnover and profit have developed inconsistently during the six-year period. In the year 2011 the company has decreased its expenses with an improved efficiency as regards the expenses thus resulting in a higher turnover and profit. The key ratio analysis shows that the company’s financial performance is good. The profitability is on a good level and excellent when compared to the competitor. Also the liquidity and solvency in the company are on a solid level. The Cash flows have sufficed to cover the company’s operating expenses and also permitted to amortize the long-term debt. Furthermore, the liquid cash funds have also increased.

The present study provides a comprehensive theoretical framework on the preparation of a financial statement analysis. The research results are derived from the official balance sheet data and they provide a reliable view of the official balance sheets and they will give a reliable image of the company’s financial situation. The reliability of the study is based on exact calculations using authentic company data.