Profit and loss account is a financial report which gives information of company's success in a given period. It contains businness, financial and incidental incomes and outcomes which then collide. The result can be profit or loss. A part of gross profit is given to the state budget as a tax, and the rest of profit stays in company like a net profit. Profit and loss account can be divided in several types : final profit and loss account, probationary profit and loss account, summary profit and loss account, liquidationary profit and loss account, sanational profit and loss account and aggregate profit and loss account. There are two methods of composing a profit and loss account. First method is total costs method, and second is method of sold output. In this thesis a horizontal and vertical analisys of profit and loss account is made for company named Presoflex gradnja d.o.o. Through horizontal analisys of profit and loss account in year 2014 it can be concluded what type of diferrences are made in comparison to year 2013. Vertical analisys shows percential share of every item in financial report. Presoflex gradnja d.o.o. operates with profit, even though the incomes are smaller due to economy crisis. Like incomes, the outcomes are also smaller because of sell decrease, which represents smaller costs for raw materials