This paper is focused on numerical analysis of a hydraulic arm for use on a light goods vehicle. The designed arm is used for loading and manipulation with load up to 300 kg. Its load capacity depends on the light goods vehicle to be placed on. Great operability of this mechanism predetermines its wide application, e.g. in construction, transport, business etc. Firstly, analytical calculations of the forces, moments and reactions are introduced. Further, locations and values of the maximum stress in the structure of the designed hydraulic arm are calculated using the FEM software. These results determine the relevant data necessary for correct design functioning of the machine. After carrying out all the analyses and calculations we will be able to determine the safe use of the designed handling machine and put it into operation.