EX-12.1 6 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of earnings to fixed charges

Exhibit 12.1

 

DAVITA INC.

 

RATIO OF EARNINGS TO FIXED CHARGES

 

The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. Earnings for this purpose is defined as pretax income from continuing operations adjusted by adding back fixed charges expensed during the period. Fixed charges include debt expense (interest expense and the amortization of deferred financing costs), the estimated interest component of rental expense on operating leases, and capitalized interest.

 

   

Three months

ended

March 31,

2005


  Year ended December 31,

      2004

  2003

  2002

  2001

  2000

    (dollars in thousands)

Earnings adjusted for fixed charges:

                                   

Income from continuing operations

  $ 91,609   $ 361,884   $ 288,266   $ 267,257   $ 242,567   $ 39,223

Add:

                                   

Debt expense

    17,534     52,412     66,828     71,636     72,438     116,637

Interest portion of rental expense

    7,118     25,772     22,927     20,336     18,116     17,140
   

 

 

 

 

 

      24,652     78,184     89,755     91,972     90,554     133,777
   

 

 

 

 

 

    $ 116,261   $ 440,068   $ 378,021   $ 359,229   $ 333,121   $ 173,000
   

 

 

 

 

 

Fixed charges:

                                   

Debt expense

    17,534     52,412     66,828     71,636     72,438     116,637

Interest portion of rental expense

    7,118     25,772     22,927     20,336     18,116     17,140

Capitalized interest

    306     1,078     1,523     1,888     751     1,125
   

 

 

 

 

 

    $ 24,958   $ 79,262   $ 91,278   $ 93,860   $ 91,305   $ 134,902
   

 

 

 

 

 

Ratio of earnings to fixed charges

    4.66     5.55     4.14     3.83     3.65     1.28
   

 

 

 

 

 

 

In the above presentation earnings adjusted for fixed charges for years prior to 2004 exclude debt refinancing charges that had been previously reported as extraordinary items.