EXHIBIT 12 | ||||||||||||||||||||
CHEMED CORPORATION | ||||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | ||||||||||||||||||||
(in thousands, except ratios) | ||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||||||
Pretax income from continuing operations | $ | 123,829 | $ | 162,754 | $ | 180,126 | $ | 177,054 | $ | 116,917 | ||||||||||
Additions: | ||||||||||||||||||||
Fixed charges | 28,032 | 21,388 | 16,985 | 17,060 | 18,009 | |||||||||||||||
Amortization of capitalized interest | 435 | 435 | 435 | 435 | 109 | |||||||||||||||
Adjusted income | $ | 152,296 | $ | 184,577 | $ | 197,546 | $ | 194,549 | $ | 135,035 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense | $ | 15,035 | $ | 8,186 | $ | 3,645 | $ | 3,715 | $ | 4,272 | ||||||||||
Interest component of rental expense | 12,997 | 13,202 | 13,340 | 13,345 | 13,737 | |||||||||||||||
Fixed charges | $ | 28,032 | $ | 21,388 | $ | 16,985 | $ | 17,060 | $ | 18,009 | ||||||||||
Ratio of earnings to fixed charges (a) | 5.4 | x | 8.6 | x | 11.6 | x | 11.4 | x | 7.5 | x | ||||||||||
(a) For purposes of computing the ratio of earnings to fixed charges, pretax income from continuing operations has | ||||||||||||||||||||
been added to fixed charges and adjusted for capitalized interest to derive adjusted income. Fixed charges consist | ||||||||||||||||||||
of interest expense on debt (including the amortization of deferred financing costs), prepayment penalties on the | ||||||||||||||||||||
early extinguishment of debt and one-third (the proportion deemed representative of the interest component) of | ||||||||||||||||||||
rental expense. Fixed charge amounts include interest from both continuing and discontinued operations. |
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