EX-12.1 3 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 rent expense on operating leases, and capitalized interest.

 

   

Three months
ended

March 31,
2006


  Year ended December 31,

      2005

  2004

  2003

  2002

  2001

        (dollars in thousands)

Earnings adjusted for fixed charges:

                                   

Income from continuing operations before income taxes

  $ 95,490   $ 331,097   $ 332,840   $ 269,651   $ 249,105   $ 227,684

Add:

                                   

Debt expense

    70,459     139,586     52,411     66,821     71,612     72,401

Interest portion of rent expense

    14,014     35,189     24,305     21,685     19,259     17,124
   

 

 

 

 

 

      84,473     174,775     76,716     88,506     90,871     89,525
   

 

 

 

 

 

    $ 179,963   $ 505,872   $ 409,556   $ 358,157   $ 339,976   $ 317,209
   

 

 

 

 

 

Fixed charges:

                                   

Debt expense

    70,459     139,586     52,411     66,821     71,612     72,401

Interest portion of rent expense

    14,014     35,189     24,305     21,685     19,259     17,124

Capitalized interest

    764     1,912     1,078     1,523     1,888     751
   

 

 

 

 

 

    $ 85,237   $ 176,687   $ 77,794   $ 90,029   $ 92,759   $ 90,276
   

 

 

 

 

 

Ratio of earnings to fixed charges

    2.11     2.86     5.26     3.98     3.67     3.51