EXHIBIT 12.1
USA EDUCATION, INC.
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(DOLLARS IN THOUSANDS)
---------- ---------- ---------- ---------- ----------
1996 1997 1998 1999 2000
---------- ---------- ---------- ---------- ----------
Pre-tax income from continuing operations before adjustment for
minority interests in consolidated subsidiaries $ 600,327 $ 759,748 $ 750,131 $ 751,652 $ 711,591
Add: Fixed charges 2,600,048 2,544,581 1,948,995 2,140,588 2,879,548
Less: Other adjustments (711) -- -- -- --
Less: Preferred dividends (16,452) (18,428) (23,998) (25,803) (42,677)
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Total Earnings $3,183,212 $3,285,904 $2,675,128 $2,866,437 $3,548,462
========== ========== ========== ========== ==========
Fixed charges
Interest expense $2,582,885 $2,526,156 $1,924,997 $2,114,785 $2,836,871
Preferred dividends 16,452 18,428 23,998 25,803 42,677
Other ajdustments 711 -- -- -- --
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Total Fixed Charges $2,600,048 $2,544,584 $1,948,995 $2,140,588 $2,879,548
========== ========== ========== ========== ==========
Ratio of earnings to fixed charges
and preferred stock dividends 1.22 1.29 1.37 1.34 1.23
========== ========== ========== ========== ==========
Ratio of earnings to fixed charges 1.23 1.29 1.38 1.34 1.24
========== ========== ========== ========== ==========
THREE MONTHS ENDED MARCH 31,
----------------------------
2000 2001
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Pre-tax income from continuing operations before adjustment for
minority interests in consolidated subsidiaries $ 231,784 $ 53,314
Add: Fixed charges 668,433 705,377
Less: Other adjustments -- --
Less: Preferred dividends (10,586) (10,512)
---------- ----------
Total Earnings $ 889,631 $ 748,179
========== ==========
Fixed charges
Interest expense $ 657,847 $ 694,865
Preferred dividends 10,586 10,512
Other ajdustments -- --
---------- ----------
Total Fixed Charges $ 668,433 $ 705,377
========== ==========
Ratio of earnings to fixed charges
and preferred stock dividends 1.33 1.06
========== ==========
Ratio of earnings to fixed charges 1.34 1.06
========== ==========
For purposes of the "earnings" computation, "other adjustments" includes the capitalized interest cost.
For purposes of the "fixed charges" computation, other adjustments includes the capitalized interest cost.