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Financial ratios play a crucial role in investment analysis by assisting investors, analysts, and stakeholders in evaluating a company's performance and financial health. These ratios provide insights into various aspects of a business, such as profitability, liquidity, solvency, and efficiency.

For instance, profitability ratios like the net profit margin can indicate how well a company converts revenue into actual profit, helping investors assess its ability to generate returns. Similarly, liquidity ratios, such as the current ratio, enable analysis of a company's ability to cover its short-term obligations, which is vital for assessing financial stability. Furthermore, ratios that measure solvency, such as the debt-to-equity ratio, reveal the level of financial leverage a company has, helping investors understand the associated risks.

By analyzing these ratios, investors can make informed decisions about whether to invest in a company, hold current investments, or divest based on the company's financial health and performance trends. Hence, they serve as essential tools in investment decision-making.

In contrast, predicting stock market trends, determining the value of physical assets, and establishing brand popularity do not directly relate to the core functions of financial ratios in evaluating a company’s performance and its overall financial situation.