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<p>(If not) then what are the3 dimensions of accounting ratio perspectives as to help to judge the performance of a business?</p>
No. In evaluating performance of business, we have to use combination of ratios because ratios have limitations. Example ROI should be used together with Residual Income. An investment with low ROI may appear like it is a bad investment, but actually it will give us our desired income as indicated by a positive Residual Income.
A single accounting ratio cannot be relied upon to judge the performance of a business as a whole. The liquidity, leverage, activity and profitability ratios are looked into collectively to obtain a quick indication of a firm's performance and identify areas that require a detailed analysis. I'd like to know what is meant by the three dimensions of accounting ratio perspectives in judging the performance of a business that has been asked by you.
One ratio is not enough to judge the business performance. The following are a few ratios which defined better the financial status of any organisation:
1. ROE Return on Equity
2. Liquidity Asset Ratio
3. Working Capital ratio or CAR Capital adequacy ratio.
4. YOY Year on year Business performance and improvement in per capita share prices
