Final answer:
Profitability ratios do not show the combined effects of liquidity, asset management, and debt management on a firm's operating results.
Step-by-step explanation:
False. Profitability ratios assess a firm's ability to generate profit from its operations and are not specifically designed to show the combined effects of liquidity, asset management, and debt management. Instead, profitability ratios focus on measuring the profitability of a company by comparing its net income to other financial measures such as sales, assets, or equity.