Exhibit 12.1
Molina Healthcare, Inc.
Computation of Ratio of Earnings to Fixed Charges
Year Ended December 31, | ||||||||||||||||||||
2009 | 2008(1) | 2007(1) | 2006 | 2005 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Income before income taxes | $ | 43,616 | $ | 99,374 | $ | 92,722 | $ | 73,458 | $ | 43,851 | ||||||||||
Add fixed charges: | ||||||||||||||||||||
Interest expense, including amortization of debt discount and exp | 13,777 | 13,231 | 5,605 | 2,353 | 1,529 | |||||||||||||||
Estimated interest portion of rental expense | 5,181 | 4,370 | 3,988 | 2,682 | 2,852 | |||||||||||||||
Total fixed charges | 18,958 | 17,601 | 9,593 | 5,035 | 4,381 | |||||||||||||||
Total earnings available for fixed charges | $ | 62,574 | $ | 116,975 | $ | 102,315 | $ | 78,493 | $ | 48,232 | ||||||||||
Fixed Charges from above | $ | 18,958 | $ | 17,601 | $ | 9,593 | $ | 5,035 | $ | 4,381 | ||||||||||
Ratio of Earnings to Fixed Charges | 3.3 | 6.6 | 10.7 | 15.6 | 11.0 | |||||||||||||||
Total rent expense | $ | 20,723 | $ | 17,481 | $ | 18,127 | $ | 12,193 | $ | 9,505 | ||||||||||
Interest factor | 25 | % | 25 | % | 22 | % | 22 | % | 30 | % | ||||||||||
Interest component of rental expense | $ | 5,181 | $ | 4,370 | $ | 3,988 | $ | 2,682 | $ | 2,852 | ||||||||||
(1) | The Registrant’s condensed statements of income for the years ended December 31, 2008 and 2007 have been recast to reflect the adoption of FASB ASC Subtopic470-20,Debt with Conversion and Other Options(see Note 1 of the notes to consolidated financial statements). |