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.

 

    

Six months
ended

June 30,
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

   $ 201,779    $ 331,097    $ 332,840    $ 269,651    $ 249,105    $ 227,684

Add:

                                         

Debt expense

     138,895      139,586      52,411      66,821      71,612      72,401

Interest portion of rent expense

     28,378      35,189      24,305      21,685      19,259      17,124
    

  

  

  

  

  

       167,273      174,775      76,716      88,506      90,871      89,525
    

  

  

  

  

  

     $ 369,052    $ 505,872    $ 409,556    $ 358,157    $ 339,976    $ 317,209
    

  

  

  

  

  

Fixed charges:

                                         

Debt expense

   $ 138,895    $ 139,586    $ 52,411    $ 66,821    $ 71,612    $ 72,401

Interest portion of rent expense

     28,378      35,189      24,305      21,685      19,259      17,124

Capitalized interest

     1,920      1,912      1,078      1,523      1,888      751
    

  

  

  

  

  

     $ 169,193    $ 176,687    $ 77,794    $ 90,029    $ 92,759    $ 90,276
    

  

  

  

  

  

Ratio of earnings to fixed charges

     2.18      2.86      5.26      3.98      3.67      3.51