The analysis of enterprise financial status is the key to enterprise management, which has an important impact on investment decision, risk control and strategic planning of enterprises. Although traditional financial analysis methods can meet the needs of enterprises to a certain extent, there are limitations in dealing with complex problems. In recent years, with the development of data mining technology, decision tree, as an effective classification and prediction tool, has been gradually applied to the study of enterprise financial status. The purpose of this paper is to discuss the application of decision tree in the analysis of enterprise financial situation, and to analyze its effect and challenge in practical application.