DaVita (DVA) 10-K 2002 FY Annual report

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 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, capitalized interest and the estimated interest component of rental expense on operating leases.

	Year ended December 31,
	2002		2001		2000		1999			1998
	(dollars in thousands)
Earnings adjusted for fixed charges:
Income (loss) before income taxes, extraordinary items and cumulative effect of a change in accounting principle	$	316,187	$	240,938	$	44,935	$	(181,826	)	$	48,641
Add:
Interest expense and amortization of financing costs		71,636		72,438		116,637		110,797			84,003
Interest portion of rental expense		20,336		18,116		17,140		17,501			12,992
		91,972		90,554		133,777		128,298			96,995
Earnings (loss) before income taxes, extraordinary items, cumulative effect of a change in accounting principle and fixed charges	$	408,159	$	331,492	$	178,712	$	(53,528	)	$	145,636
Fixed charges:
Interest expense and amortization of financing costs		71,636		72,438		116,637		110,797			84,003
Capitalized interest		1,888		751		1,125		709			804
Interest portion of rental expense		20,336		18,116		17,140		17,501			12,992
Total fixed charges		93,860		91,305		134,902		129,007			97,799
Ratio of earnings to fixed charges		4.35		3.63		1.32			(a)		1.49

(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.