EX-12.1 6 dex121.htm STATEMENT RE: COMPUTATION OF RATIOS OF EARNINGS Statement Re: Computation of Ratios of Earnings

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 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, capitalized interest and the estimated interest component of rental expense on operating leases.

 

    

Year ended December 31,


    

2002


  

2001


  

2000


  

1999


      

1998


    

(dollars in thousands)

Earnings adjusted for fixed charges:

                                      

Income (loss) before income taxes, extraordinary items and cumulative effect of a change in accounting principle

  

$

316,187

  

$

240,938

  

$

44,935

  

$

(181,826

)

    

$

48,641

Add:

                                      

Interest expense and amortization of financing costs

  

 

71,636

  

 

72,438

  

 

116,637

  

 

110,797

 

    

 

84,003

Interest portion of rental expense

  

 

20,336

  

 

18,116

  

 

17,140

  

 

17,501

 

    

 

12,992

    

  

  

  


    

    

 

91,972

  

 

90,554

  

 

133,777

  

 

128,298

 

    

 

96,995

    

  

  

  


    

Earnings (loss) before income taxes, extraordinary items, cumulative effect of a change in accounting principle and fixed charges

  

$

408,159

  

$

331,492

  

$

178,712

  

$

(53,528

)

    

$

145,636

    

  

  

  


    

Fixed charges:

                                      

Interest expense and amortization of financing costs

  

 

71,636

  

 

72,438

  

 

116,637

  

 

110,797

 

    

 

84,003

Capitalized interest

  

 

1,888

  

 

751

  

 

1,125

  

 

709

 

    

 

804

Interest portion of rental expense

  

 

20,336

  

 

18,116

  

 

17,140

  

 

17,501

 

    

 

12,992

    

  

  

  


    

Total fixed charges

  

 

93,860

  

 

91,305

  

 

134,902

  

 

129,007

 

    

 

97,799

    

  

  

  


    

Ratio of earnings to fixed charges

  

 

4.35

  

 

3.63

  

 

1.32

  

 

 

 (a)

    

 

1.49

    

  

  

  


    


(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 $182,535 to achieve a coverage of 1:1.