Nowadays many companies are facing difficulties in their business, hence there is greater need for indicators that could inform the management in time about the performance of their companies. The objective of this work was to evaluate overall financial situation of selected company that makes business in food processing industry. This analysis was conducted between years 2002–2006 according to its financial statements, mainly balance sheet and profit and loss statement. Special financial methods were used to find out what factors has mostly influenced the development of this company in the specified period. The obtained results were used for evaluation of the company''s financial situation and there were suggested measures that could be taken for the improvement of financial situation for the company''s future development. This work can be used as a guideline for performing a financial analysis of small or middle sized companies. It is a useful tool for managers to evaluate the company''s performance, viability and possible future development. However this work can also serve students of Business Economics schools to better understand the financial analysis dilemma.