EX-12.1 2 v08554exv12w1.htm EX-12.1 exv12w1
 

EXHIBIT 12.1

COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
EXHIBIT 12.1 – COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
(Dollar amounts in thousands)

The following table sets forth the ratio of earnings to fixed charges of the Company for the three months ended March 31, 2005 and 2004, the years ended December 31, 2004, 2003, and 2002, ten-month period ended December 31, 2001, and the fiscal year ended February 28, 2001 computed by dividing net fixed charges (interest expense on all debt plus the interest element (one-third) of operating leases) into earnings (earnings before income taxes and fixed charges).

                                                         
    Three Months Ended     Year Ended     Ten Months Ended     Fiscal Year Ended  
    March 31,     December 31,     December 31,     February 28,  
(Dollars are in thousands)   2005     2004     2004     2003     2002     2001     2001  
Net earnings
  $ 688,852     $ 543,189     $ 2,197,574     $ 2,372,950     $ 841,779     $ 486,006     $ 374,153  
Income tax expense
    460,145       339,494       1,398,299       1,472,822       501,244       302,613       211,882  
Interest expense
    995,937       517,555       2,608,338       1,940,207       1,461,066       1,474,719       1,330,724  
Interest portion of rental expense
    14,197       11,380       53,562       36,565       26,671       16,201       17,745  
 
                                         
Earnings available to cover fixed charges
  $ 2,159,131     $ 1,411,618     $ 6,257,773     $ 5,822,544     $ 2,830,760     $ 2,279,539     $ 1,934,504  
 
                                         
 
                                                       
Fixed charges:
                                                       
Interest expense
  $ 995,937     $ 517,555     $ 2,608,338     $ 1,940,207     $ 1,461,066     $ 1,474,719     $ 1,330,724  
Interest portion of rental expense
    14,197       11,380       53,562       36,565       26,671       16,201       17,745  
 
                                         
Total fixed charges
  $ 1,010,134     $ 528,935     $ 2,661,900     $ 1,976,772     $ 1,487,737     $ 1,490,920     $ 1,348,469  
 
                                         
 
                                                       
Ratio of earnings to fixed charges
    2.14       2.67       2.35       2.95       1.90       1.53       1.43