EX-12.1 9 dex121.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Computation of Ratios 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 operations adjusted by adding back fixed charges expensed during the period and debt refinancing charges. Fixed charges include debt expense (interest expense and the amortization of deferred financing costs), the estimated interest component of rental expense on operating leases, and capitalized interest.

 

     Year ended December 31,

     2004

   2003

   2002

   2001

    2000

     (dollars in thousands)

Earnings adjusted for fixed charges:

                                   

Income before income taxes, and cumulative effect of a change in accounting principle

   $ 361,884    $ 288,266    $ 267,257    $ 242,567     $ 39,223

Add:

                                   

Debt expense

     52,412      66,828      71,636      72,438       116,637

Interest portion of rental expense

     25,772      22,927      20,336      18,116       17,140

Debt refinancing charges

            26,501      48,930      (1,629 )     5,712
    

  

  

  


 

       78,184      116,256      140,902      88,925       139,489
    

  

  

  


 

     $ 440,068    $ 404,522    $ 408,159    $ 331,492     $ 178,712
    

  

  

  


 

Fixed charges:

                                   

Debt expense

     52,412      66,828      71,636      72,438       116,637

Interest portion of rental expense

     25,772      22,927      20,336      18,116       17,140

Capitalized interest

     1,078      1,523      1,888      751       1,125
    

  

  

  


 

     $ 79,262    $ 91,278    $ 93,860    $ 91,305     $ 134,902
    

  

  

  


 

                                     
                                     

Ratio of earnings to fixed charges

     5.55      4.43      4.35      3.63       1.32