EX-12.1 2 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES. 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 rental expense on operating leases, and capitalized interest.

 

    

Six months
ended

June 30,

2005


   Year ended December 31,

        2004

   2003

   2002

   2001

   2000

          (dollars in thousands)

Earnings adjusted for fixed charges:

                                         

Income from continuing operations

   $ 176,972    $ 361,884    $ 288,266    $ 267,257    $ 242,567    $ 39,223

Add:

                                         

Debt expense

     42,431      52,412      66,828      71,636      72,438      116,637

Interest portion of rental expense

     14,581      25,772      22,927      20,336      18,116      17,140
    

  

  

  

  

  

       57,012      78,184      89,755      91,972      90,554      133,777
    

  

  

  

  

  

     $ 233,984    $ 440,068    $ 378,021    $ 359,229    $ 333,121    $ 173,000
    

  

  

  

  

  

Fixed charges:

                                         

Debt expense

     42,431      52,412      66,828      71,636      72,438      116,637

Interest portion of rental expense

     14,581      25,772      22,927      20,336      18,116      17,140

Capitalized interest

     819      1,078      1,523      1,888      751      1,125
    

  

  

  

  

  

     $ 57,831    $ 79,262    $ 91,278    $ 93,860    $ 91,305    $ 134,902
    

  

  

  

  

  

Ratio of earnings to fixed charges

     4.05      5.55      4.14      3.83      3.65      1.28