EXHIBIT 12
HOVNANIAN ENTERPRISES, INC.
Statement setting forth computation showing the ratio of earnings to fixed
charges, including wholly owned mortgage banking and finance subsidiaries.
(Dollars in Thousands)
Year Ended
October 31, October 31, October 31, October 31, October 31,
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
Net income (loss)....... $ 30,075 $ 25,403 $ (6,970) $ 17,287 $ 14,128
Add:
Federal and State
Income Taxes........ 19,674 15,141 (5,154) 7,719 7,526
Extraordinary Loss.... 868 748
Interest Expensed
Res & Comm.......... 31,570 39,352 37,704 32,157 30,744
Interest Expensed
Mortgage & Finance
Subsidiaries........ 3,240 3,099 1,778 2,354 2,836
Amortization of Bond
Prepaid Expenses.... 549 625 636 671 671
------------ ----------- --------- ----------- -----------
Total Earnings.... $ 85,976 $ 84,368 $ 27,994 $ 60,188 $ 55,905
============ =========== ========= =========== ===========
Fixed Charges:
Interest Incurred Res
& Comm.............. 24,594 28,947 34,777 35,551 37,828
Interest Incurred
Mortgage & Finance
Subsidiaries........ 3,240 3,099 1,778 2,354 2,836
Amortization of Bond
Prepaid Expenses.... 549 625 636 671 671
------------ ----------- --------- ----------- -----------
Total Fixed
Charges......... $ 28,383 $ 32,671 $ 37,191 $ 38,576 $ 41,335
============ =========== ========= =========== ===========
Ratio................... 3.0 2.6 (a) 1.6 1.4
(a) Earnings for the year ended October 31, 1997 were insufficient to cover
fixed charges for such period by $9,197,000.