EXHIBIT 12.1
DAVITA INC.
RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges is computed by dividing fixed charges into earnings. Earnings is defined as pretax income from continuing operations adjusted by adding fixed charges and excluding interest capitalized during the period. Fixed charges means the total of interest expense, amortization of financing costs, and the estimated interest component of rental expense on operating leases.
Nine months ended September 30, 2001 | Year ended December 31, | ||||||||||||||
2000 | 1999 | 1998 | 1997 | 1996 | |||||||||||
(dollars in thousands) | |||||||||||||||
Income (loss) before income taxes, extraordinary items and cumulative effect of a change in accounting principle | $183,480 | $ 44,935 | $(181,826 | ) | $ 48,641 | $ 81,178 | $54,563 | ||||||||
Fixed charges: | |||||||||||||||
Interest expense and amortization of debt issuance costs and discounts on all indebtedness | 56,758 | 116,637 | 110,797 | 84,003 | 29,082 | 13,670 | |||||||||
Interest portion of rental expense | 13,399 | 17,140 | 17,501 | 12,992 | 8,196 | 5,301 | |||||||||
Total fixed charges | 70,157 | 133,777 | 128,298 | 96,995 | 37,278 | 18,971 | |||||||||
Earnings (loss) before income taxes, extraordinary items, cumulative effect of a change in accounting principle and fixed charges | $253,637 | $178,712 | $ (53,528 | ) | $145,636 | $118,456 | $73,534 | ||||||||
Ratio of earnings to fixed charges | 3.62 | 1.34 | (a) | 1.50 | 3.18 | 3.88 | |||||||||
(a) | Due to the Company’s loss in 1999, the ratio coverage was less than 1:1. The Company would have had to generate additional earnings of $181,826 to achieve a coverage of 1:1. |