Decision makers and analysts often use groups of ratios to examine the different aspects of a companys performance. Indicate whether each of the following statements regarding financial ratios are true or false?

Statement: A company exhibiting a high liquidity ratio means it is not likely to have enough resources to pay off its short-term obligations. Debt or financial leverage ratios help analysts determine whether a company has sufficient cash to repay its short-term debt obligations. A company's shareholder is anyone who is affected by the actions of that company, such as employees, members of the local community in which the business operates, or members of the community in which the business has an environmental impact. One possible explanation for a decrease in a firm's profitability ratios over a certain time span is that the company's income has increased. Market-value or market-based ratios help analysts figure out what investors and the markets think about the firm's growth prospects or current and future operational performance. Asset management or activity ratios do not provide useful insights into management's efficiency in using a firm's working capital and long-term assets