EXHIBIT 12.1
TENET HEALTHCARE CORPORATION
STATEMENT RE: COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
FOR THE
YEAR ENDED MAY 31,
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1994 1995 1996 1997 1998
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Income (loss) from continuing operations before
income taxes $314 $417 $ 881 $(21) $ 647
Less: Equity in earnings of unconsolidated affiliates 27 43 25 1 5
Add:
Cash dividends received from unconsolidated affiliates 3 8 6 5 4
Portion of rents representative of interest 41 53 76 79 89
Interest, net of capitalized portion 157 251 425 417 464
Amortization of previously capitalized interest 4 4 4 4 5
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Income, as adjusted 492 690 1,367 483 1,204
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Fixed charges:
Interest, net of capitalized portion 157 251 425 417 464
Capitalized interest 5 8 11 12 16
Portion of rents representative of interest 41 53 76 79 89
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Total fixed charges $203 $312 $ 512 $508 $ 569
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Ratio of earnings to fixed charges(1): 2.4X 2.2X 2.7X 1.0X 2.1X
(1) The ratio of earnings to fixed charges for the year ended May 31, 1998,
on a pro forma basis, assuming that the 7-5/8% Senior Notes due 2008 and
8-1/8% Senior Subordinated Notes due 2008 had been issued as of June 1,
1997 and the proceeds applied to reduce indebtedness consistent with the
historical refinancing which occurred in May 1998, is 2.2X.