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 write-off 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,
2007
   Year ended December 31,
        2006    2005    2004    2003    2002
          (dollars in thousands)

Earnings adjusted for fixed charges:

                 

Income from continuing operations before income taxes

   $ 333,606    $ 475,759    $ 331,097    $ 332,840    $ 269,651    $ 249,105

Add:

                 

Debt expense

     131,781      276,706      139,586      52,411      66,821      71,612

Interest portion of rent expense

     31,637      60,395      35,189      24,305      21,685      19,259
                                         
     163,418      337,101      174,775      76,716      88,506      90,871
                                         
   $ 497,024    $ 812,860    $ 505,872    $ 409,556    $ 358,157    $ 339,976
                                         

Fixed charges:

                 

Debt expense

   $ 131,781    $ 276,706    $ 139,586    $ 52,411    $ 66,821    $ 71,612

Interest portion of rent expense

     31,637      60,395      35,189      24,305      21,685      19,259

Capitalized interest

     1,939      4,708      1,912      1,078      1,523      1,888
                                         
   $ 165,357    $ 341,809    $ 176,687    $ 77,794    $ 90,029    $ 92,759
                                         

Ratio of earnings to fixed charges

     3.01      2.38      2.86      5.26      3.98      3.67