Ryland 10-K 2003 FY Annual report

Exhibit 12.1: Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratio)

	Year ended December 31,
	1999			2000			2001			2002			2003
Consolidated pretax income1	$	109,336		$	134,840		$	218,336		$	309,340		$	396,217
Share of distributed income of 50%-or-less-owned affiliates, net of equity pickup		(263	)		(163	)		(26	)		(2,689	)		94
Amortization of capitalized interest		19,027			27,581			31,878			32,162			38,263
Interest1		52,764			62,610			62,571			49,086			55,211
Less interest capitalized during the period		(24,397	)		(34,105	)		(31,675	)		(39,695	)		(42,602	)
Net amortization of debt discount and premium and issuance expense		33			—			—			—			—
Interest portion of rental expense		4,522			6,065			7,190			6,679			5,973
EARNINGS	$	161,022		$	196,828		$	288,274		$	354,883		$	453,156
Interest1	$	52,764		$	62,610		$	62,571		$	49,086		$	55,211
Net amortization of debt discount and premium and issuance expense		33			—			—			—			—
Interest portion of rental expense		4,522			6,065			7,190			6,679			5,973
FIXED CHARGES	$	57,319		$	68,675		$	69,761		$	55,765		$	61,184
Ratio of earnings to fixed charges		2.81			2.87			4.13			6.36			7.41
Ratio before reclassification of costs associated with the early extinguishment of debt1		2.81			2.87			4.61			6.36			7.41

¹ The Company adopted the provisions of SFAS 145, with respect to the rescission of Statement 4, in the third quarter of 2002. As a result, $7.2 million of costs associated with the early extinguishment of long-term debt, previously classified as an extraordinary item in 2001, are currently included in homebuilding interest expense. Accordingly, the effect of such reclassification has been reflected in the computation of the 2001 ratio.