EXHIBIT 12.1
THE CHARLES SCHWAB CORPORATION
Computation of Ratio of Earnings to Fixed Charges
(Dollar amounts in thousands, unaudited)
Three Months Ended
March 31,
1996 1995
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Earnings before taxes on income $ 79,670 $ 63,381
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Fixed charges
Interest expense - customer 86,391 71,905
Interest expense - other 12,618 7,298
Interest portion of rental expense 5,427 4,673
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Total fixed charges (a) 104,436 83,876
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Earnings before taxes on income and fixed charges (b) $184,106 $147,257
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Ratio of earnings to fixed charges (b) divided by (a) (1) 1.8 1.8
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Ratio of earnings to fixed charges as adjusted (2) 5.4 6.3
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(1) The ratio of earnings to fixed charges is calculated in a manner consistent with SEC requirements. For such
purposes, "earnings" consist of earnings before taxes on income and fixed charges. "Fixed charges" consist of
interest expense incurred on payables to customers, long-term debt (including current maturities) and one-third of
rental expense, which is estimated to be representative of the interest factor.
(2) Because interest expense incurred in connection with payables to customers is completely offset by interest revenue
on related investments and margin loans, the Company considers such interest to be an operating expense.
Accordingly, the ratio of earnings to fixed charges as adjusted reflects the elimination of such interest expense as
a fixed charge.