Exhibit 12.1
VeraSun Energy Corporation
Computation of Ratio of Earnings to Fixed Charges
Year Ended December 31, | |||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||
Fixed charges : | |||||||||||||||
Interest expense (including amortization of debt issuance cost) | 33,376 | 37,871 | 23,353 | 8,892 | 839 | ||||||||||
Capitalized interest | 23,335 | 3,622 | 3,534 | 11 | 1,721 | ||||||||||
Total fixed charges | 56,711 | 41,493 | 26,887 | 8,903 | 2,560 | ||||||||||
Add amortization of capital interest | 562 | 262 | 127 | 82 | — | ||||||||||
Less interest capitalized | (23,335 | ) | (3,622 | ) | (3,534 | ) | (11 | ) | (1,721 | ) | |||||
Income before income taxes and minority interest | 36,955 | 130,077 | 774 | 24,913 | 1,163 | ||||||||||
Total earnings before fixed charges | 70,893 | 168,210 | 24,253 | 33,887 | 2,002 | ||||||||||
Ratio of earning to fixed charges (1)(2) | 1.25 | 4.05 | 0.90 | 3.81 | 0.78 |
(1) | For the purpose of determining the ratio of earnings to fixed charges, earnings are defined as pretax income from continuing operations before adjustment for minority interest in consolidated subsidiary plus fixed charges and amortization of capitalized interest, less capitalized interest. Fixed charges consist of interest expense, which includes amortization of debt issuance costs and capitalized interest. |
(2) | The additional earnings needed to cover fixed charges in 2005 and 2003 were $2.6 million and $558,000, respectively. |