Literature on financial statement analysis has been documented by various authors on how the performances of organisations can be measured using financial statement analysis as a tool. Most of the literature focused on what has been written in relating to organisations which are listed on the stock exchange. However, the same principles which are applied in evaluating the performance of large organisations can equally be applied to any organisation; this includes small and medium-sized enterprises operating in Namibia. Despite the fact that financial statement analysis is an important tool for evaluating the performance of organisations, no previous literature was found pertaining to the evaluation of the performance of Namibian small and medium-sized enterprises using this tool. This research will attempt to identify how management of Namibian small and medium-sized enterprises can effectively make use of financial statement analysis as a tool in evaluating the performance of the organisations in order to make correct strategic decisions that will benefit the SMEs.