In order to show the stability of a company, financial analyzes of operations are carried out, which show the success and safety of the company's operations. There are a lot off analyzes that are carried out on various financial indicators. This master's thesis examines the link between corporate leverage and liquidity in Croatia. Maintaining the liquidity and profitability of a company is one of the most important tasks of business management. One can define liquidity as the ability to pay one's current obligations. Businesses use liquidity pools in order to ensure smooth operation and avoid the risk of inability to settle obligations, which also includes supplying the business cycle with necessary inputs in a timely manner. Corporate leverage can be defined as a relationship between the usage of a company’s resources and financing from external sources. The lower the liquidity is and the higher the leverage ratio, the higher the risk of investing in a company. Based on the analysis of previous research, it was determined that there is a connection between leverage and liquidity. While in some researches it was determined that the connection is positive, that is, that the growth of one variable also increases the other and vice versa, in other researches it was found that the connection is negative, which means that the growth of one variable increases the other and vice versa. In the theoretical part of the thesis the concepts of liquidity and leverage are clarified, previous researches that connect liquidity and leverage are described, and correlation analysis is described as a methodology used to investigate their mutual connection. In the empirical part of the work, using the statistical software Statistica 14.0.0, correlation analysis is applied to test the hypothesis that there is a correlation between leverage and liquidity of the company. On the basis of the obtained results, the existence of a statistically significant correlation between indebtedness and liquidity of companies in Croatia was confirmed - as the financing of liabilities increases, the liquidity of the company decreases and vice versa, that is, the more liquid the company is, the more it is financed with its own funds.