The purpose of the financial statements analysis is to inform interested users about the financial position of the company and about its business results. Analyzing the financial statements provides, a complete picture of business operations enabling a comparison with other companies and ultimately facilitating proper business decisions. The subject of this final paper is a comparative analysis of financial statements between two competing companies engaged in the provision of food and catering services. Hoteli Makarska and Medora hoteli i ljetovališta are facing a daily challenges on the competing domestic an foreign market. To obtain an overall picture, the financial statements of the selected companies for the years 2016. and 2017. were analyzed based on financial indicators. In addition to the indicators, the Croatian BEX index was also applied. The obtained results were analyzed and interpreted. It becomes evident that Hoteli Makarska has achieved better liquidity over the observed period, although liquidity for Medora hoteli i ljetovališta is also increasing. In analyzing indebtedness indicators for the observed period it becomes evident that Hoteli Makarska is financed mostly from its own sources while the indicators for Medora hoteli i ljetovališta show that approx.half of the financing relies on its own sources whereas the other half comes from foreign sources. A further detailed analysis should be conducted which would enable the mentioned companies to react promptly to market demands.