Ocwen Financial Corporation and Subsidiaries Exhibit 12.1
Computation of Earnings to Fixed Charges
(Dollars in Thousands)
Year Ended December 31,
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1998 1997 1996 1995 1994
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Earnings:
(Loss) income from continuing operations
before income taxes (1) $ (32,805) $ 99,538 $ 61,301 $ 37,701 $ 81,577
Add:
Fixed charges (2) $ 202,003 $163,798 $116,680 $ 84,626 $ 63,549
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Earnings for computation purposes $ 169,198 $263,336 $177,981 $122,327 $145,126
Ratio of earnings to fixed charges:
Including interest on deposits (3) (4) 0.84 1.61 1.53 1.45 2.28
Excluding interest on deposits (3) (4) 0.62 3.39 3.68 3.95 5.40
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(1) Earnings represents income from continuing operations excluding
undistributed income of $440 from a less than fifty percent owned entity.
(2) Fixed charges represent total interest expensed and capitalized, including
and excluding interest on deposits, amortization of capitalized debt
expenses, as well as the interest component of rental expense.
(3) The ratios of earnings to fixed charges were computed by dividing (x)
income from continuing operations before income taxes, extraordinary gains
and cumulative effect of a change in accounting principle excluding
undistributed income from a less than fifity percent owned entity plus
fixed charges by (y) fixed charges.
(4) Excluding after-tax impairment charges of $97.1 million ($152.8 million
pre-tax) the Company's ratio of earnings to fixed charges for the year
ended December 31, 1998 would have been 1.95 and 3.14 including and
excluding interest on deposits, respectively.