EX-12.1 13 y29219exv12w1.htm EX-12.1: COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS EX-12.1
 

EXHIBIT 12.1
THE GOLDMAN SACHS GROUP, INC. and SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
($ in millions)
                                         
    Year Ended November  
    2006     2005     2004     2003     2002  
Net earnings
   $ 9,537     $ 5,626     $ 4,553     $ 3,005     $ 2,114  
Add:
                                        
Provision for taxes
     5,023       2,647       2,123       1,440       1,139  
Portion of rents representative of an interest factor
     135       119       118       120       120  
Interest expense on all indebtedness
     31,688       18,153       8,888       7,600       8,868  
 
                              
 
                                        
Pre-tax earnings, as adjusted
   $ 46,383     $ 26,545     $ 15,682     $ 12,165     $ 12,241  
 
                              
 
                                        
Fixed charges(1):
                                        
Portion of rents representative of an interest factor
   $ 135     $ 119     $ 118     $ 120     $ 122  
Interest expense on all indebtedness
     31,755       18,161       8,893       7,613       8,874  
 
                              
 
                                        
Fixed charges
   $ 31,890     $ 18,280     $ 9,011     $ 7,733     $ 8,996  
 
                              
 
                                        
Preferred stock dividend requirements
     212       25       —       —       —  
 
                                        
Total combined fixed charges and preferred stock dividends
   $ 32,102     $ 18,305     $ 9,011     $ 7,733     $ 8,996  
 
                              
 
                                        
Ratio of earnings to fixed charges
     1.45 x      1.45 x      1.74 x      1.57 x      1.36 x 
 
                              
 
                                        
Ratio of earnings to combined fixed charges and preferred stock dividends
     1.44 x      1.45 x      —       —       —  
 
                              
 
(1)   Fixed charges include capitalized interest of $67 million, $8 million, $5 million, $13 million and $6 million as of November 2006, November 2005, November 2004, November 2003 and November 2002, respectively.