Exhibit 12.1
DELL INC — RATIO OF EARNINGS TO FIXED CHARGES
(in millions, except ratio)
(in millions, except ratio)
Q2FY 2009 | FY 2008 | FY 2007 | FY 2006 | FY 2005 | FY 2004 | |||||||||||||||||||
Earnings1 | ||||||||||||||||||||||||
Pre-tax income (loss) from continuing operations | 1718 | 3440 | 3070 | 4382 | 4206 | 3525 | ||||||||||||||||||
Add: Fixed Charges less capitalized interest | 58 | 84 | 71 | 52 | 35 | 39 | ||||||||||||||||||
Add: Investment and Other Income | 143 | 387 | 275 | 226 | 197 | 186 | ||||||||||||||||||
Add: Minority Interest | 0 | 29 | 23 | 27 | 17 | 4 | ||||||||||||||||||
TOTAL EARNINGS | 1919 | 3940 | 3439 | 4687 | 4455 | 3754 | ||||||||||||||||||
Fixed Charges2 | ||||||||||||||||||||||||
Interest Expense | 38 | 45 | 45 | 29 | 15 | 14 | ||||||||||||||||||
Capitalized interest | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Estimate of interest in rent expense | 20 | 39 | 26 | 23 | 20 | 25 | ||||||||||||||||||
TOTAL FIXED CHARGES | 58 | 84 | 71 | 52 | 35 | 39 | ||||||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 33 | 47 | 49 | 90 | 128 | 96 |
1 | Earnings means the amounts resulting from the following: (a) our operating income, plus (b) our fixed charges less capitalized interest, plus (c) investment and other income, plus (d) our minority interests in the income of subsidiaries | |
2 | Fixed charges means the amounts resulting from the following: (a) our interest expensed, plus (b) our interest capitalized, plus (c) a reasonable estimation of the interest factor included in rental expense |
Total rental expense | 61 | 118 | 78 | 70 | 60 | 76 | ||||||||||||||||||
Interest factor — one-third of rental expense | 20 | 39 | 26 | 23 | 20 | 25 |