Can terraform-docs create readme.md by reading terraform state file?

Hi all,
trying to understand if terraform-docs create readme.md by reading terraform state file?

Well, I’ve checked the documentation here GitHub - terraform-docs/terraform-docs: Generate documentation from Terraform modules in various output formats and here Introduction | terraform-docs and it don’t mention anything beside something like this below:

Terraform-docs analyzes the Terraform configuration files provided in a module or project directory.

It seems like terraform-docs could use just a state file to generate a readme. But does state file contains all the information, including input variables, outputs, descriptions, and any other relevant information defined within the files?

I’m not sure state files do contain all the details necessary to generate comprehensive documentation. Maybe this can work as a reference - terraform-example/terraform/terraform.tfstate at master · mdb/terraform-example · GitHub

To be sure, I would compare state file and documentation that terraform-docs created.