1 LAIDLAW ENVIRONMENTAL SERVICES, INC. Schedule of Ratio of Earnings to Fixed Charges Exhibit 12 ($ in Thousands) For the Fiscal Years Ended August 31, 1997 1996 1995 1994 1993 - ----------------------------------------------------------------------------------------------------------------------------- Income (loss) from continuing operations before income tax ($306,122) $11,860 $21,684 $25,731 $17,066 Add back: Fixed charges (excluding interest capitalized) 56,306 58,817 52,942 42,577 37,478 ---------------------------------------------------------------- Adjusted income (249,816) 70,677 74,626 68,308 54,544 ---------------------------------------------------------------- Ratio of earnings to fixed charges (4.44) 1.20 1.41 1.60 1.46 ================================================================ Fixed charges: Interest expense (excluding interest capitalized) $ 44,273 $46,850 $41,142 $34,000 $30,679 Rental expense (representative of interest factor) 12,033 11,967 11,800 8,577 6,799 ---------------------------------------------------------------- Total fixed charges $ 56,306 $58,817 $52,942 $42,577 $37,478 ================================================================ 19