EX-12.1 3 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Encore Capital Group, Inc.

 

Computation of Ratio of Earnings to Fixed Charges

 

(in thousands)

     Fiscal Years
     Nine months ended
September 30,
     2004    2003    2002    2001     2000     2005    2004

Earnings before income taxes

    $ 38,846    $ 29,423    $ 8,086    $ (9,716 )   $ (30,987 )   $ 39,303    $ 29,172
    
 

Fixed charges:

                                                   

Interest Expense on all indebtedness

      35,330      20,479      18,592      10,945       7,829       24,939      26,829

Rental expense deemed to be representative of interest

      367      319      439      433       367       433      236
    
 

Total fixed charges

      35,697      20,798      19,031      11,378       8,196       25,372      27,065

Earnings before income taxes, plus fixed charges

      74,543      50,221      27,117      1,662       (22,791 )     64,675      56,237

Dollar value of deficit

                                   (30,987 )             
    
 

Ratio of earnings to fixed charges(1)

      2.09      2.41      1.42      0.15       (2.78 )     2.55      2.08

 

(1)   These computations include us and our consolidated subsidiaries. For purposes of computing this ratio of earnings to fixed charges, “fixed charges” consist of interest expense on all indebtedness, amortization of debt issuance costs, and that portion of rental expense deemed to be representative of interest. Earnings consist of income (loss) before provision for income taxes plus fixed charges.