EX-12.1 9 a07-11145_1ex12d1.htm EX-12.1

Exhibit 12.1

COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
EXHIBIT 12.1 — COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES

The following table sets forth the ratio of earnings to fixed charges of the Company for the three months ended March 31, 2007 and 2006 and the years ended December 31, 2006, 2005, 2004, 2003, and 2002, 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).

 

 

Quarters Ended
March 31,

 

Years Ended
December 31,

 

(dollar amounts in thousands)

 

2007

 

2006

 

2006

 

2005

 

2004

 

2003

 

2002

 

Net earnings

 

$

433,981

 

$

683,511

 

$

2,674,846

 

$

2,528,090

 

$

2,197,574

 

$

2,372,950

 

$

841,779

 

Income tax expense

 

266,814

 

435,852

 

1,659,289

 

1,619,676

 

1,398,299

 

1,472,822

 

501,244

 

Interest expense

 

2,621,045

 

1,899,323

 

9,133,682

 

5,616,425

 

2,608,338

 

1,940,207

 

1,461,066

 

Interest portion of rental expense

 

21,919

 

17,749

 

77,055

 

62,104

 

53,562

 

36,565

 

26,671

 

Earnings available to cover fixed charges

 

$

3,343,759

 

$

3,036,435

 

$

13,544,872

 

$

9,826,295

 

$

6,257,773

 

$

5,822,544

 

$

2,830,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

2,621,045

 

$

1,899,323

 

$

9,133,682

 

$

5,616,425

 

$

2,608,338

 

$

1,940,207

 

$

1,461,066

 

Interest portion of rental expense

 

21,919

 

17,749

 

77,055

 

62,104

 

53,562

 

36,565

 

26,671

 

Total fixed charges

 

$

2,642,964

 

$

1,917,072

 

$

9,210,737

 

$

5,678,529

 

$

2,661,900

 

$

1,976,772

 

$

1,487,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

1.27

 

1.58

 

1.47

 

1.73

 

2.35

 

2.95

 

1.90