Signal Corp.engages in the operation and ownership of general merchandise stores. It offers food assortments including perishables, dry grocery, dairy, and frozen items. Using all the tools including common size vertical and trend analysis, analyze the gross, operational and net profitability of the company. Use the three step approach $($where you state the facts, analyze your findings and based on your evaluations come to a conclusion$).$

INCOME STATEMENT OF SIGNAL CORPORATION

JAN $\text{'}23$ JAN $\text{'}22$ JAN $\text{'}21$

$\backslash$table$[[$Sales$,109\mathrm{.}12,106\mathrm{.}005,93\mathrm{.}561],[$COGS incl. D&A$,84\mathrm{.}614,77\mathrm{.}307,68\mathrm{.}181],[$Dep & Amort Expense,$2\mathrm{.}7,2\mathrm{.}642,2\mathrm{.}485],[$Gross Income,$24\mathrm{.}506,28\mathrm{.}698,25\mathrm{.}38],[$SG&A Expense,$20\mathrm{.}592,19\mathrm{.}665,18\mathrm{.}553],[$EBIT $($Operating Income$),3\mathrm{.}914,9\mathrm{.}033,6\mathrm{.}827],[$Nonoperating Income $($exp$),0\mathrm{.}048,0\mathrm{.}382,-0\mathrm{.}016],[$Interest Expense,$0\mathrm{.}482,0\mathrm{.}421,0\mathrm{.}465],[$Unusual Expense,$0\mathrm{.}062,0\mathrm{.}087,0\mathrm{.}8],[$Pretax Income,$3\mathrm{.}418,8\mathrm{.}907,5\mathrm{.}546],[$Income Taxes,$0\mathrm{.}638,1\mathrm{.}961,1\mathrm{.}178],[$Net Income,$2\mathrm{.}780,6\mathrm{.}946,4\mathrm{.}368]]$