EX-12.1 16 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of 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.

 

     Year ended December 31,
     2008    2007    2006    2005    2004
     (dollars in thousands)

Earnings adjusted for fixed charges:

              

Income from continuing operations before income taxes

   $ 609,460    $ 627,522    $ 475,759    $ 331,097    $ 332,840

Add:

              

Debt expense

     224,716      257,147      276,706      139,586      52,411

Interest portion of rent expense

     72,562      64,613      60,395      35,189      24,305
                                  
     297,278      321,760      337,101      174,775      76,716
                                  
   $ 906,738    $ 949,282    $ 812,860    $ 505,872    $ 409,556
                                  

Fixed charges:

              

Debt expense

     224,716      257,147      276,706      139,586      52,411

Interest portion of rent expense

     72,562      64,613      60,395      35,189      24,305

Capitalized interest

     4,189      3,878      4,708      1,912      1,078
                                  
   $ 301,467    $ 325,638    $ 341,809    $ 176,687    $ 77,794
                                  

Ratio of earnings to fixed charges

     3.01      2.92      2.38      2.86      5.26