_____ ratios measure management effectiveness in creating wealth from sales and from invested funds.

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Profitability ratios, such as return on assets and return on equity, measure how well management is using sales and invested funds to generate profits and create wealth for the company's shareholders. Liquidity ratios measure a company's ability to meet its short-term liabilities, activity ratios measure how efficiently a company is managing its assets, and leverage ratios measure a company's level of debt in relation to its equity.

_____ Ratios Measure Management Effectiveness in Creating Wealth from Sales