The capital structure is one of the fundamental decisions that company management must make. That is the reason I have chosen this topic for my dissertation. The capital structure of a company; can be organized in two ways: through its own resources and through other sources of financing. The company's management aims to select the source that will achieve maximum profitability for the company; Financial indicators; are of great help when deciding on the type of capital structure for management. By analyzing them, the management will gain a clearer picture of the real situation and possibilities of the company in the future. Also, in this dissertation I have explained some of the most important financial statements; namely: balance sheet, income statement, and cash flow statement. Their purpose is to help owners and shareholders to be informed about the actual state of the company in the market. The last part of the dissertation explains the impact of capital structure on profitability within Croatian companies; I would like to take this opportunity to thank my mentor dr. sc. Goran Karanović, for his help and professional guidance through the creation of this dissertation. Also, with his advice and enthusiasm, he helped me overcome all the problems I have encountered while writing this dissertation.