Exhibit 12
AIRGAS, INC.
COMPUTATION OF FINANCIAL RATIOS
(In thousands, except ratios)
Ratio of Earnings to Fixed Charges | 2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||||||
EARNINGS COMPUTATION: | ||||||||||||||||||||
Add: | ||||||||||||||||||||
Pretax income from continuing operations before equity earnings and minority interest | $ | 147,627 | $ | 208,037 | $ | 257,144 | $ | 370,762 | $ | 429,353 | ||||||||||
Fixed charges | 83,139 | 93,205 | 107,340 | 144,302 | 134,433 | |||||||||||||||
$ | 230,766 | $ | 301,242 | $ | 364,484 | $ | 515,064 | $ | 563,786 | |||||||||||
Subtract: | ||||||||||||||||||||
Preferred dividend requirements of consolidated affiliate | (4,626 | ) | (4,589 | ) | (4,589 | ) | (1,147 | ) | — | |||||||||||
Capitalized interest | — | — | (502 | ) | (1,647 | ) | (3,400 | ) | ||||||||||||
Earnings for purposes of computation | $ | 226,140 | $ | 296,653 | $ | 359,393 | $ | 512,270 | $ | 560,386 | ||||||||||
FIXED CHARGES COMPUTATION: | ||||||||||||||||||||
Interest expense(1) | $ | 57,547 | $ | 64,067 | 76,227 | 110,888 | 101,279 | |||||||||||||
Estimate of the interest component of rent expense | 20,966 | 24,549 | 26,524 | 32,267 | 33,154 | |||||||||||||||
Preferred dividend requirements of consolidated affiliates(2) | 4,626 | 4,589 | 4,589 | 1,147 | — | |||||||||||||||
Fixed charges for purposes of computation | $ | 83,139 | $ | 93,205 | 107,340 | 144,302 | 134,433 | |||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 2.72 | X | 3.18 | X | 3.35 | X | 3.55 | X | 4.17 | X |
(1) | Includes capitalized interest, amortization of capitalized financing costs and discount on trade receivable securitization. | |
(2) | Preferred stock of National Welders was converted to Airgas common stock on July 3, 2007. |