Innospec (IOSP) 10-K 2006 FY Annual report

EXHIBIT 12.1—STATEMENT REGARDING COMPUTATION OF FINANCIAL RATIOS

(dollar amounts in millions except per share figures)

		2006			2005			2004			2003			2002
1. NET INCOME/(LOSS) AS A PERCENT OF SALES
A	Net income/(loss)	$	11.4		$	(123.7	)	$	6.2		$	51.8		$	52.1
B	Net sales	$	532.1		$	564.8		$	496.9		$	471.8		$	467.8
A% of B			2.1	%		(21.9	)%		1.2	%		11.0	%		11.1	%
2. EFFECTIVE INCOME TAX RATE AS A PERCENT
C	Income taxes	$	20.4		$	4.2		$	20.1		$	23.2		$	23.0
D	Income/(loss) before income taxes	$	31.8		$	(118.1	)	$	32.0		$	77.3		$	74.6
C% of D			64.2	%		(3.5	)%		62.8	%		30.0	%		30.8	%
3. CURRENT RATIO
E	Current assets	$	305.3		$	239.8		$	199.6		$	178.9		$	171.8
F	Current liabilities	$	142.9		$	140.5		$	169.4		$	112.8		$	187.6
E:F			2.1			1.7			1.2			1.6			0.9
4. EARNINGS PER SHARE
G	Net income/(loss)	$	11.4		$	(123.7	)	$	6.2		$	51.8		$	52.1
H	Basic shares outstanding		12,071			12,368			12,345			11,925			11,817
I	Diluted shares outstanding		12,670			12,368			12,989			12,554			12,557
G/H	Basic earnings per share	$	0.94		$	(10.00	)	$	0.50		$	4.34		$	4.41
G/I	Diluted earnings per share	$	0.90		$	(10.00	)	$	0.48		$	4.13		$	4.15
Shares in thousands, earnings per share in dollars.
5. WORKING CAPITAL
J	Accounts receivable	$	78.3		$	64.8		$	84.4		$	71.7		$	80.7
K	Inventories		120.0			96.5			76.9			56.5			55.7
L	Prepaid expenses		5.1			5.3			5.0			4.6			5.5
M	Accounts payable		(50.0	)		(54.5	)		(49.7	)		(53.0	)		(55.2	)
N	Accrued liabilities		(55.5	)		(59.4	)		(62.1	)		(43.7	)		(45.9	)
J+K+L+M+N	Working Capital	$	97.9		$	52.7		$	54.5		$	36.1		$	40.8