EX-12.1 2 y44651a2ex12-1.txt COMPUTATION OF RATIO OF EARNINGS 1 Exhibit 12.1 QUEST DIAGNOSTICS INCORPORATED COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS (DOLLARS IN THOUSANDS, EXCEPT RATIOS)
YEAR ENDED DECEMBER 31, ------------------------------------------------------------- 2000 1999 1998 1997 1996 ------------------------------------------------------------- Income (loss) before income taxes, equity earnings and minority share of income ..................... $ 204,002 $ 20,473 $ 61,070 $ (16,468) $(676,202) Adjustments: Distributed income from less than 50% owned companies ......... 2,952 1,740 -- -- -- Fixed charges ....................... 145,721 89,336 59,242 61,860 94,098 --------- --------- --------- --------- --------- Earnings before taxes and fixed charges, as adjusted ................ $ 352,675 $ 111,549 $ 120,312 $ 45,392 $(582,104) ========= ========= ========= ========= ========= Fixed charges: Interest expense .................... $ 120,471 $ 69,842 $ 43,977 $ 46,040 $ 77,691 Portion of rent expense which represents interest factor ....... 25,250 19,494 15,265 15,820 16,407 --------- --------- --------- --------- --------- Total fixed charges ................... $ 145,721 $ 89,336 $ 59,242 $ 61,860 $ 94,098 ========= ========= ========= ========= ========= Preferred dividends: Preferred dividend requirements ..... $ 118 $ 118 $ 118 $ 129 $ -- Ratio of pre-tax income to net income ........................... 1.9 (11.3) (2.0) 0.9 1.1 --------- --------- --------- --------- --------- Pre-tax preferred dividend requirement ...................... 225 (1,327) (235) 110 -- Total fixed charges ................... 145,721 89,336 59,242 61,860 94,098 --------- --------- --------- --------- --------- Fixed charges and pre-tax preferred dividend requirement ..... $ 145,946 $ 88,009 $ 59,007 $ 61,970 $ 94,098 ========= ========= ========= ========= ========= Ratio of earnings to fixed charges .... 2.4x 1.2x 2.0x --(a) --(a) Ratio of earnings to combined fixed charges and preferred dividends .... 2.4x 1.3x 2.0x --(a) --(a)
(a) Earnings were insufficient to cover combined fixed charges and preferred stock dividend requirements by the following amounts (in thousands) in the years indicated:
YEAR ENDED DECEMBER 31, --------------------------------- 1997 1996 ------------ ----------- $ 16,578 $ 676,202