This thesis is a report on how new operating models have affected NN Ltd. economy and economic development during 2015–2016. Since 2016 NN Ltd. has been part of a nationwide physiotherapy business and the new operating models have changed the financial status of the company.

The aim of this thesis is to evaluate the financial status of NN Ltd. in 2015–2016 and to perform the differences in cost structure caused by new operating models. The purpose of this thesis is to review the business and summarize the reasons that caused changes in NN Ltd. cost structure. The thesis will also discuss NN Ltd. economic development and profitable business in the future.

The theoretical part of this thesis is consisted of financial statements, financial statement analysis, profitable business, financial risk factors and cost structure affecting business economy. The theory is based on several sources. The evaluation of the financial status of NN Ltd. is based on financial statement analysis. The company key figures based on profitability, liquidity and solvency were matched with guideline values and comparable key figures in physiotherapy business in general. NN Ltd. financial information also explained the differences in revenue and cost structure. The structural changes are demonstrated by percentile income statement and balance sheet. The analysis and the key figures are based on 2015–2016 financial statements.

The results suggest changes in NN Ltd. cost structure. However, the business is profitable even if the key figures show that the development has been less positive in 2016. The net profit decreased because of investment costs, short-term liabilities and labour costs. In the future NN Ltd. is forced to offer more versatile products and services of high quality. In conclusion, the company should focus on personnel training and co-operation.