The purpose of this thesis was to study the case company’s financial performance by means of a financial statement analysis. The client company operates in the excavation business. The financial statement analysis focused on three fields of economy: profitability, solidity and solvency. The analysis was composed with a statistics analysis, cash flow statement, percentage financial statement and trend analysis. The target of this thesis was also to make improvement propositions if needed.

The theory part of the thesis focused on composing a financial statement and financial statement analysis. The part contains the theory on all methods used during the research. This thesis was created based on books and laws dealing with the subject. The research was targeted to concern the case company’s accounting periods between 2010 and 2014. The information on the company’s income statements, balance sheets and notes of the financial statements during those years were used to carry out the research. In addition there were used sectoral statistics offered by Finnvera Oyj. The case-company was compared to those statistics. The official financial statement was corrected. A statistics analysis, cash flow statement, percentage financial statement and trend analysis were created based on the corrected financial statement.

It came out during the research that the financial state of the company is quite good compared to the situation of the whole industry. The business is profitable and its solidity and solvency are on a relatively good basis. The overall profit and the profitability are however on a downturn. As a conclusion of the research it can be stated that the key factor to make the overall profit and profitability increase is to grow the revenue. Decreasing the costs is not that essential in this case.