Exhibit 12.1
TD AMERITRADE Holding Corporation
Computation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
(Unaudited)
Computation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
(Unaudited)
Fiscal Year Ended | ||||||||||||||||||||
Sept. 30, | Sept. 30, | Sept. 30, | Sept. 29, | Sept. 30, | ||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
Determination of earnings: | ||||||||||||||||||||
Pre-tax income | $ | 1,059,404 | $ | 1,263,502 | $ | 1,034,703 | $ | 857,305 | $ | 553,492 | ||||||||||
Fixed charges | 68,773 | 338,693 | 585,740 | 441,606 | 151,178 | |||||||||||||||
Earnings before income taxes and fixed charges (A) | $ | 1,128,177 | $ | 1,602,195 | $ | 1,620,443 | $ | 1,298,911 | $ | 704,670 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest on borrowings(1) | $ | 40,070 | $ | 78,447 | $ | 118,173 | $ | 93,988 | $ | 1,967 | ||||||||||
Brokerage interest expense | 15,166 | 249,616 | 455,467 | 335,820 | 141,399 | |||||||||||||||
Interest portion of rent expense | 13,537 | 10,630 | 12,100 | 11,798 | 7,812 | |||||||||||||||
Total fixed charges (B) | $ | 68,773 | $ | 338,693 | $ | 585,740 | $ | 441,606 | $ | 151,178 | ||||||||||
Ratio of earnings to fixed charges (A) ÷ (B) | 16.4 | 4.7 | 2.8 | 2.9 | 4.7 | |||||||||||||||
Ratio of earnings to fixed charges, excluding brokerage interest expense(2) | 20.8 | 15.2 | 8.9 | 9.1 | 57.6 |
(1) | Interest on borrowings includes amortization of capitalized debt issuance costs. | |
(2) | Because interest expense incurred in connection with brokerage activities is completely offset by brokerage interest revenue, the Company considers such interest to be a reduction of net revenues. Accordingly, the ratio of earnings to fixed charges, excluding brokerage interest expense, reflects the elimination of such interest expense from fixed charges. |