Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth DriveTime’s ratio of earnings to fixed charges for the periods indicated:
| Year Ended December 31, | ||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||
Net Income (loss) | 86,106 | 71,895 | (280 | ) | 51,997 | 70,682 | ||||||||||||||
Add: Income taxes | (1,426 | ) | 1,000 | 1,090 | 730 | 404 | ||||||||||||||
Add: Fixed charges | 64,042 | 83,694 | 102,772 | 115,946 | 103,779 | |||||||||||||||
Less: Interest capitalized | (407 | ) | (300 | ) | (83 | ) | (105 | ) | (186 | ) | ||||||||||
Earnings | 148,315 | 156,289 | 103,499 | 168,568 | 174,679 | |||||||||||||||
Total interest expense | 57,824 | 76,701 | 97,082 | 110,666 | 98,102 | |||||||||||||||
Interest component of rent expense-estimated | 5,811 | 6,693 | 5,607 | 5,175 | 5,491 | |||||||||||||||
Interest capitalized | 407 | 300 | 83 | 105 | 186 | |||||||||||||||
Total fixed charges | 64,042 | 83,694 | 102,772 | 115,946 | 103,779 | |||||||||||||||
Ratio of earnings to fixed charges(1) | 2.3x | 1.9x | 1.0x | 1.5x | 1.7x | |||||||||||||||
| (1) | The ratio of earnings to fixed charges is defined as earnings divided by fixed charges. For purposes of this calculation, earnings represents net income plus income taxes, fixed charges, less interest capitalized. Fixed charges represents the sum of interest expense (which includes amortization of premiums, discounts and capitalized expenses related to indebtedness), and the component of rental expense that we believe to be representative of the interest factor for those amounts (one-third of rental expense). |