EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

 

SWS Group, Inc. and Subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(in thousands, except ratio)

 

    

Fiscal Years Ended

Restated (see Note 1(t))

     June 24,
2005
    June 25,
2004
   

June 27,

2003

   

June 28,

2002

    

June 29,

2001

Income (loss) before income taxes and minority interest in consolidated subsidiaries

    $ 48,909    $ 9,499    $ 5,962    $ (5,903 )   $ 36,673
    
  
  
  
 

Add fixed charges:

                                    

Interest expense

      78,955      33,324      39,885      65,807       171,578

Interest factor in rents (1)

      3,092      3,595      5,759      7,798       6,608
    
  
  
  
 

Total fixed charges

      82,047      36,919      45,644      73,605       178,186
    
  
  
  
 

Earnings before fixed charges and income taxes

    $ 130,956    $ 46,418    $ 51,606    $ 67,702     $ 214,859
    
  
  
  
 

Ratio of earnings to fixed charges

      1.6      1.3      1.1      —         1.2
    
  
  
  
 

Deficiency of earnings available to cover fixed charges

      —        —        —      $ (5,903 )     —  
    
  
  
  
 
(1) SWS estimates that one-third of rental expense is representative of the interest factor.