Exhibit 12
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
| Years Ended December 31, | ||||||||||||||||
| 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||
Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees | $ | 399,536 | $ | 225,165 | $ | 42,229 | $ | (18,457 | ) | $ | 1,000 | |||||
Distributed income of equity investees | 2,141 | 553 | 14,089 | 10,747 | 12,036 | |||||||||||
Fixed charges: | ||||||||||||||||
Interest expense and amortization of debt discount and premium on all indebtedness | 164,156 | 68,995 | 2,073 | 1,083 | 1,665 | |||||||||||
Rentals: Equipment and office rent expense— 33.33% | 2,798 | 1,719 | 1,692 | 1,657 | 1,305 | |||||||||||
Total fixed charges | $ | 166,954 | $ | 70,714 | $ | 3,765 | $ | 2,740 | $ | 2,970 | ||||||
Pre-tax income (loss) from continuing operations before adjustments for income or loss from equity investees plus fixed charges and distributed income of equity investees | $ | 568,631 | $ | 296,432 | $ | 60,083 | $ | (4,970 | ) | $ | 16,006 | |||||
Ratio of earnings to fixed charges | 3.4 | 4.2 | 16.0 | (A | ) | 5.4 | ||||||||||
| (A) | Due to the company’s losses in 2001, the ratio coverage in this year was less than 1:1. The company would have had to generate additional earnings of $7,710 to achieve coverage of 1:1 in this year. |
