The main task of accounting is to collect and to process information of financial origin and to present the collected information to interested users. This information is contained in a number of financial reports of which the main ones are the balance sheet, the income statement, the statement of changes in equity, the cash flow statement and footnotes to the financial statements. The analysis of financial reports means the application of different analytical instruments and procedures which convert the information from the financial reports into relevant information for decision-making and managing. The most frequent techniques used in analyzing financial reports are horizontal analysis, vertical analysis and the analysis by financial indicators. Financial indicators are created by putting two economic values from the same or different financial reports in relation to each other, requiring that such a relation has a meaning and significance. This thesis shows an analysis of financial reports based on the company HNK Hajduk Split š.d.d., and for this reason three research hypotheses have been set, of which two have been accepted and one has been dismissed. The horizontal analysis has found that there has been a decrease of the obligations and the loss compared to the base year 2012, and based on this the hypotheses H1 has been accepted. The analysis of the indicators of liquidity, indebtedness, activity, economy and profitability, such as the analysis of cash flow indicators have shown detailed insight into the financial situation of the company, and also have shown the motion of the single indicators during the years. Based on this the hypotheses H2 has been accepted. The hypothesis H3 has been dismissed because, although most of the indicators have shown an improvement compared to 2012, just a few of them have shown a trend of drawing closer to the ideal theoretic values during all four observed years. In conclusion it can be said that the new board has achieved a financial stabilization of HNK Hajduk Split š.d.d. compared to the alarming figures shown in 2012, but there is still a considerable potential for improvement