EX-12.1 4 dex121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement regarding computation of ratio of earnings to fixed charges

Exhibit 12.1

DAVITA INC.

RATIO OF EARNINGS TO FIXED CHARGES

The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. Earnings for this purpose is defined as pretax income from continuing operations adjusted by adding back fixed charges expensed during the period. Fixed charges include debt expense (interest expense and the amortization of deferred financing costs), the estimated interest component of rent expense on operating leases, and capitalized interest.

 

   

Three months ended

March 31,

  Year ended December 31,
    2007   2006   2006   2005   2004   2003   2002
            (dollars in thousands)

Earnings adjusted for fixed charges:

             

Income from continuing operations before income taxes

  $ 127,642   $ 95,490   $ 475,759   $ 331,097   $ 332,840   $ 269,651   $ 249,105

Add:

             

Debt expense

    68,870     70,459     276,706     139,586     52,411     66,821     71,612

Interest portion of rent expense

    15,416     14,014     60,395     35,189     24,305     21,685     19,259
                                         
    84,286     84,473     337,101     174,775     76,716     88,506     90,871
                                         
  $ 211,928   $ 179,963   $ 812,860   $ 505,872   $ 409,556   $ 358,157   $ 339,976
                                         

Fixed charges:

             

Debt expense

  $ 68,870   $ 70,459   $ 276,706   $ 139,586   $ 52,411   $ 66,821   $ 71,612

Interest portion of rent expense

    15,416     14,014     60,395     35,189     24,305     21,685     19,259

Capitalized interest

    934     764     4,708     1,912     1,078     1,523     1,888
                                         
  $ 85,220   $ 85,237   $ 341,809   $ 176,687   $ 77,794   $ 90,029   $ 92,759
                                         

Ratio of earnings to fixed charges

    2.49     2.11     2.38     2.86     5.26     3.98     3.67