1 Exhibit 12 Ugly Duckling Corporation Ratio Of Earnings to Fixed Charges (dollar amounts in thousands) 1997 1996 1995 1994 1993 ---- ---- ---- ---- ---- Fixed Charges: Interest expense $ 5,260 $5,262 $ 5,956 $ 3,037 $ 893 Capitalized interest 229 0 54 142 0 Interest factor in rent expense (1) 1,764 790 784 462 161 ------- ------ ------- ------- ------- $ 7,253 $6,052 $ 6,794 $ 3,641 $ 1,054 ======= ====== ======= ======= ======= Earnings: Earnings (Loss) from operations $16,024 $ 5,966 $(3,972) $(2,301) $ 728 Fixed charges 7,253 6,052 6,794 3,641 1,054 ------- ------- ------- ------- ------- $23,277 $12,018 $ 2,822 $ 1,340 $ 1,782 ======= ======= ======= ======= ======= Ratio of Earnings to fixed charges 3.21 1.99 0.42 (2) 0.37 (2) 1.69 ======= ======= ======= ======= ======= (1) One-third of rent expense is deemed to be representative of the interest factor. (2) Earnings are inadequate to cover fixed charges. The deficiency in 1994 and 1995 was $2,301 and $3,972, respectively.