Exhibit 12
AIRGAS, INC.
COMPUTATION OF FINANCIAL RATIOS
(In thousands, except ratios)
Ratio of Earnings to Fixed Charges | 2004 | 2005 | 2006 | 2007 | 2008 | |||||||||||||||
EARNINGS COMPUTATION: | ||||||||||||||||||||
Add: | ||||||||||||||||||||
Pretax income from continuing operations before equity earnings and minority interest | $ | 124,395 | $ | 147,627 | $ | 208,037 | $ | 257,144 | $ | 370,762 | ||||||||||
Fixed charges | 66,848 | 83,139 | 92,553 | 104,998 | 142,000 | |||||||||||||||
Distributed income of unconsolidated Affiliate | 724 | — | — | — | — | |||||||||||||||
$ | 191,967 | $ | 230,766 | $ | 300,590 | $ | 362,142 | $ | 512,762 | |||||||||||
Subtract: | ||||||||||||||||||||
Preferred dividend requirements of consolidated affiliate | (1,151 | ) | (4,626 | ) | (4,589 | ) | (4,589 | ) | (1,147 | ) | ||||||||||
Earnings for purposes of computation | $ | 190,816 | $ | 226,140 | $ | 296,001 | $ | 357,553 | $ | 511,615 | ||||||||||
FIXED CHARGES COMPUTATION: | ||||||||||||||||||||
Interest expense (1) | $ | 46,340 | $ | 57,547 | $ | 65,110 | $ | 75,725 | $ | 111,262 | ||||||||||
Estimate of the interest component of rent expense | 19,357 | 20,966 | 22,854 | 24,684 | 29,591 | |||||||||||||||
Preferred dividend requirements of consolidated affiliate (2) | 1,151 | 4,626 | 4,589 | 4,589 | 1,147 | |||||||||||||||
Fixed charges for purposes of computation | $ | 66,848 | $ | 83,139 | $ | 92,553 | $ | 104,998 | $ | 142,000 | ||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 2.85 | X | 2.72 | X | 3.20 | X | 3.41 | X | 3.60 | X |
(1) | includes 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. |