Financial analysis plays an extremely important role in the business decision-making,especially in the state-owned enterprises.Due to their important state-owned attributes,state-owned enterprises themselves undertake more social responsibilities and missions.Therefore,as an important tool of enterprise management,the application of financial analysis in state-owned enterprises is also very extensive and necessary.This paper aims to discuss the application of financial analysis in state-owned enterprises,and deeply analyze the particularity of state-owned enterprises.Meanwhile,on account of analyzing the problems and challenges encountered by financial analysis in state-owned enterprises,the paper explores how to better apply financial analysis in state-owned enterprises to make business decisions.