The thesis evaluates both the business and financial performance of Arctic Paper Munkedals AB. The company was founded in 1817 and is located in Munkedal, Sweden. The evaluation was achieved through ratio analysis of the annual reports of Arctic Paper Munkedals AB over a five-year period and business performance analysis using the balanced scorecard model. The data collections are from the annual financial reports for five years before the 2008 recession. Different financial ratios were evaluated such as short-term liquidity ratios, leverage ratios, profitability ratios, asset utilization and capital market ratios. The mathematical calculations were established for ratio analysis from 2003-2007 along with graphical analysis and comparisons. According to Altman (The Journal of Finance, 1968), observed evidence for five years prior to failure was cited as conclusive that ratio analysis can be useful in the prediction of failure. The research paper also analyzes the business performance of Arctic Paper Munkedals AB using the balanced scorecard model. This model is a customer-based planning and process improvement system, with its primary focus on driving an organization's change process by identifying and evaluating pertinent performance measures. It complements the traditional financial perspective with other non­financial perspectives such as customer satisfaction, internal business process as well as learning and growth. The balanced set of performance measures tells a concise yet complete story about the achievement and performance of the organization toward its mission and goals. It provides a holistic view of what is happening in the organization.