Financial ratios can highlight a firm's financial performance with regard to liquidity, solvency, and profitability.

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Financial ratios are tools used to evaluate a company's financial performance and health. They can help investors and analysts assess different aspects of a company's financial situation, including liquidity (ability to meet short-term obligations), solvency (ability to meet long-term obligations), and profitability (ability to generate profits). Therefore, the statement is true.

Financial Ratios Can Highlight a Firm's Financial Performance with Regard