EXHIBIT 12.1
DAVITA INC.
RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. Earnings for this purpose is defined as pretax income from continuing operations adjusted by adding fixed charges other than interest capitalized during the period. Fixed charges is defined as the total of interest expense, amortization of financing costs, and the estimated interest component of rental expense on operating leases.
Three months ended March 31, 2002 | Year ended December 31, | ||||||||||||||||||
2001 | 2000 | 1999 | 1998 | 1997 | |||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Earnings adjusted for fixed charges: | |||||||||||||||||||
Income (loss) before income taxes, extraordinary items and cumulative effect of a change in accounting principle | $ | 61,978 | $ | 240,938 | $ | 44,935 | $ | (181,826 | ) | $ | 48,641 | $ | 81,178 | ||||||
Add: | |||||||||||||||||||
Interest expense and amortization of financing costs | 15,805 | 72,438 | 116,637 | 110,797 | 84,003 | 29,082 | |||||||||||||
Interest portion of rental expense | 4,950 | 18,116 | 17,140 | 17,501 | 12,992 | 8,196 | |||||||||||||
20,755 | 90,554 | 133,777 | 128,298 | 96,995 | 37,278 | ||||||||||||||
Earnings (loss) before income taxes, extraordinary items, cumulative effect of a change in accounting principle and fixed charges | $ | 82,000 | $ | 331,492 | $ | 178,712 | $ | (53,528 | ) | $ | 145,636 | $ | 118,456 | ||||||
Fixed charges: | |||||||||||||||||||
Interest expense and amortization of financing costs | 15,805 | 72,438 | 116,637 | 110,797 | 84,003 | 29,082 | |||||||||||||
Capitalized interest | 319 | 751 | 1,125 | 709 | 804 | 685 | |||||||||||||
Interest portion of rental expense | 4,950 | 18,116 | 17,140 | 17,501 | 12,992 | 8,196 | |||||||||||||
Total fixed charges | 21,074 | $ | 91,305 | $ | 134,902 | $ | 129,007 | $ | 97,799 | $ | 37,963 | ||||||||
Ratio of earnings to fixed charges | 3.93 | 3.63 | 1.32 | (a | ) | 1.49 | 3.12 | ||||||||||||
(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 $182,535 to achieve a coverage of 1:1. |