EX-12 4 e13446ex12.txt RATIO OF EARNINGS Exhibit 12.1 Ratio of Earnings to Fixed Charges Omnicom Group Inc. Ratio of Earnings to Fixed Charges 1997-2002 ($000s)
Quarter ended Years Ended December 31, March 31, -------------------------------------------------------------- ----------------------- 1997 1998 1999 2000(B) 2001 2001(D) 2002(C) ---------- ---------- ---------- ---------- ---------- ---------- ---------- Earnings as defined: Profit before tax as reported ............ $ 390,578 $ 521,797 $ 673,708 $ 911,617 $ 895,385 $ 170,975 $ 217,536 Add: Dividends from affiliates ........... 14,901 19,353 10,485 39,222 28,378 3,684 3,604 Interest expense ................... 44,783 74,482 84,908 116,681 90,922 23,908 13,852 Interest factor (re: rentals) (A) .. 80,890 103,829 113,861 131,594 150,914 37,552 38,397 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total earnings ........................... $ 531,152 $ 719,461 $ 882,962 $1,199,114 $1,165,599 $ 236,119 $ 273,389 ========== ========== ========== ========== ========== ========== ========== Fixed charges as defined: Interest expense ......................... 44,783 74,482 84,908 116,681 90,922 23,908 13,852 Interest factor (re: rentals) (A) ........ 80,890 103,829 113,861 131,594 150,914 37,552 38,397 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total fixed charges ...................... $ 125,673 $ 178,311 $ 198,769 $ 248,275 $ 241,836 $ 61,460 $ 52,249 ========== ========== ========== ========== ========== ========== ========== Ratio of earnings to fixed charges ....... 4.23x 4.03x 4.44x 4.83x 4.82x 3.84x 5.23x ========== ========== ========== ========== ========== ========== ==========
---------- (A) The interest factor related to rentals reflects the appropriate portion of rental expense representative of an interest factor. (B) Includes $110.0 gain on Razorfish shares in the first quarter of 2000. (C) The March 31, 2002 amounts exclude goodwill amortization. Effective January 1, 2002 in accordance with Financial Accounting Standards Board Statement No. 142 -- "Goodwill and other Intangibles" the company stopped recording goodwill amortization expense. (D) The March 31, 2001 amounts include goodwill amortization. For comparison purposes, the March 31, 2001 profit before tax without goodwill amortization expense would have been $193,646 and the March 31, 2001 ratio of earnings to fixed charges without goodwill amortization expense would have been 4.21x.