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 operations adjusted by adding back fixed charges expensed during the period and debt refinancing charges. Fixed charges include debt expense (interest expense and the amortization of deferred financing costs), the estimated interest component of rental expense on operating leases, and capitalized interest.
Year ended December 31, | ||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||
(dollars in thousands) | ||||||||||||||||
Earnings adjusted for fixed charges: | ||||||||||||||||
Income before income taxes, and cumulative effect of a change in accounting principle | $ | 361,884 | $ | 288,266 | $ | 267,257 | $ | 242,567 | $ | 39,223 | ||||||
Add: | ||||||||||||||||
Debt expense | 52,412 | 66,828 | 71,636 | 72,438 | 116,637 | |||||||||||
Interest portion of rental expense | 25,772 | 22,927 | 20,336 | 18,116 | 17,140 | |||||||||||
Debt refinancing charges | 26,501 | 48,930 | (1,629 | ) | 5,712 | |||||||||||
78,184 | 116,256 | 140,902 | 88,925 | 139,489 | ||||||||||||
$ | 440,068 | $ | 404,522 | $ | 408,159 | $ | 331,492 | $ | 178,712 | |||||||
Fixed charges: | ||||||||||||||||
Debt expense | 52,412 | 66,828 | 71,636 | 72,438 | 116,637 | |||||||||||
Interest portion of rental expense | 25,772 | 22,927 | 20,336 | 18,116 | 17,140 | |||||||||||
Capitalized interest | 1,078 | 1,523 | 1,888 | 751 | 1,125 | |||||||||||
$ | 79,262 | $ | 91,278 | $ | 93,860 | $ | 91,305 | $ | 134,902 | |||||||
Ratio of earnings to fixed charges | 5.55 | 4.43 | 4.35 | 3.63 | 1.32 | |||||||||||