Exhibit 12
M.D.C. HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended June 30, | Three Months to June 30, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
(dollars in 000's) | 2005 | 2004 | 2005 | 2004 | 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||||||||||||||||
Earnings | $ | 322,345 | $ | 251,749 | $ | 176,230 | $ | 143,379 | $ | 675,748 | $ | 389,940 | $ | 301,072 | $ | 286,228 | $ | 232,034 | ||||||||||||||||||
Fixed Charges | $ | 28,512 | $ | 19,624 | $ | 14,805 | $ | 10,068 | $ | 43,011 | $ | 43,977 | $ | 27,453 | $ | 28,782 | $ | 30,844 | ||||||||||||||||||
Earnings to Fixed Charges | 11.31 | 12.83 | 11.90 | 14.24 | 15.71 | 8.87 | 10.97 | 9.94 | 7.52 | |||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||||||
Pretax Earnings from Continuing Operations | 299,906 | 234,105 | 163,977 | 134,287 | 636,914 | 348,223 | 274,044 | 255,387 | 203,201 | |||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||
Fixed Charges | 28,512 | 19,624 | 14,805 | 10,068 | 43,011 | 43,977 | 27,453 | 28,782 | 30,844 | |||||||||||||||||||||||||||
Less capitalized interest | (21,925 | ) | (15,075 | ) | (11,110 | ) | (7,709 | ) | (32,879 | ) | (26,779 | ) | (21,116 | ) | (22,498 | ) | (24,367 | ) | ||||||||||||||||||
Add amortization of previously capitalized interest | 15,852 | 13,095 | 8,558 | 6,733 | 28,702 | 24,519 | 20,691 | 24,557 | 22,356 | |||||||||||||||||||||||||||
Total Earnings | 322,345 | 251,749 | 176,230 | 143,379 | 675,748 | 389,940 | 301,072 | 286,228 | 232,034 | |||||||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||||||
Homebuilding and corporate interest expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Mortgage lending interest expense | 1,138 | 768 | 654 | 385 | 1,946 | 1,967 | 1,822 | 2,666 | 3,115 | |||||||||||||||||||||||||||
Interest component of rent expense | 3,351 | 2,322 | 1,835 | 1,247 | 5,462 | 3,897 | 2,812 | 2,253 | 2,177 | |||||||||||||||||||||||||||
Amortization and expensing of debt expenses (1) | 2,098 | 1,459 | 1,206 | 727 | 2,724 | 11,334 | 1,703 | 1,365 | 1,185 | |||||||||||||||||||||||||||
Capitalized interest | 21,925 | 15,075 | 11,110 | 7,709 | 32,879 | 26,779 | 21,116 | 22,498 | 24,367 | |||||||||||||||||||||||||||
Total Fixed Charges | 28,512 | 19,624 | 14,805 | 10,068 | 43,011 | 43,977 | 27,453 | 28,782 | 30,844 | |||||||||||||||||||||||||||
(1) | Year Ended December 31, 2003 includes $9,315 of expenses related to debt redemption. |