EX-12.1 2 dex121.txt 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 fixed charges into earnings. Earnings is defined as pretax income from continuing operations adjusted by adding fixed charges and excluding interest capitalized during the period. Fixed charges means the total of interest expense, amortization of financing costs, and the estimated interest component of rental expense on operating leases.
Three months ended Year ended December 31, March 31, --------------------------------------------- 2001 2000 1999 1998 1997 1996 ------------ -------- --------- -------- -------- ------- (dollars in thousands) Income (loss) before income taxes, extraordinary items and cumulative effect of a change in accounting principle.............. $54,634 $ 44,935 $(181,826) $ 48,641 $ 81,178 $54,563 ------- -------- --------- -------- -------- ------- Fixed charges: Interest expense and amortization of debt issuance costs and discounts on all indebtedness......... 19,724 116,637 110,797 84,003 29,082 13,670 Interest portion of rental expense....... 4,345 17,140 17,501 12,992 8,196 5,301 ------- -------- --------- -------- -------- ------- Total fixed charges............ 24,069 133,777 128,298 96,995 37,278 18,971 ------- -------- --------- -------- -------- ------- Earnings (loss) before income taxes, extraordinary items, cumulative effect of a change in accounting principle and fixed charges................ $78,703 $178,712 $ (53,528) $145,636 $118,456 $73,534 ======= ======== ========= ======== ======== ======= Ratio of earnings to fixed charges.......... 3.27 1.34 (a) 1.50 3.18 3.88 ======= ======== ========= ======== ======== =======
-------- (a) Due to the Company's loss in 1999, the ratio coverage was less than 1:1. The Company would have had to generate additional earnings of $181,826 to achieve a coverage of 1:1.