EXHIBIT 12.1 TOTAL RENAL CARE HOLDINGS, 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 continuing operations adjusted by adding fixed charges and excluding interest capitalized during the period. Fixed charges means the total of interest expense and amortization of financing costs, and the estimated interest component of rental expense on operating leases. In 1995, we changed our fiscal year end to December 31 from May 31. Seven months Years ended ended May 31, December 31, Years ended December 31, --------------- --------------- --------------------------------- 1994 1995 1994 1995 1995 1996 1997 1998 ------- ------- ------- ------- ------- ------- -------- -------- (in thousands, except for ratio data) Income before income taxes, minority interest, extraordinary items and cumulative effect of a charge in accounting principle .. $18,753 $24,323 $14,174 $26,436 $39,685 $60,945 $99,741 $64,085 Minority interest....... 1,046 1,593 878 1,784 2,544 3,578 4,502 7,163 ------- ------- ------- ------- ------- ------- -------- -------- 17,707 22,730 13,296 24,652 37,141 57,367 95,239 56,922 ------- ------- ------- ------- ------- ------- -------- -------- Fixed Charges: Interest expense and amortization of debt issuance costs and discounts on all indebtedness........... 1,575 9,087 4,676 8,007 13,375 14,075 30,289 83,710 Interest portion of rental expense......... 1,926 2,475 1,438 1,950 3,347 5,301 8,196 12,992 ------- ------- ------- ------- ------- ------- -------- -------- Total fixed charges..... 3,501 11,562 6,114 9,957 16,722 19,376 38,485 152,624 ------- ------- ------- ------- ------- ------- -------- -------- Earnings before income taxes, extraordinary items, cumulative effect of a change in accounting principle and fixed charges...... $21,208 $34,292 $19,410 $34,609 $53,863 $76,743 $133,202 $209,546 ======= ======= ======= ======= ======= ======= ======== ======== Ratio of earnings to fixed charges.......... 6.06 2.97 3.17 3.48 3.22 3.96 3.47 1.59 ======= ======= ======= ======= ======= ======= ======== ========