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Abstract
Rapid changes on the market, such as rising of the prices of energy and raw materials, the emergence of new competitors, impossibility of collection of receivables, impossibility of settling obligations to suppliers and business partners are significant difficulties that company must solve to for further survival, growth and development. In front of the management there are serious business actions which execution will achieve the desired goal or will lead company to the loss and, because of difficult business conditions, very fast to the bankruptcy. For production companies it is very important to analyze the changes that occur in the field of income and expenses. Adequate analysis can determine the change of the position of economic success of the enterprise in observed period. The results of these analysis show the economic efficiency of business, so as the elements on which management should focus its efforts. The analysis was conducted on domestic company on the basis of data obtained from official financial reports.