EX-12.1 8 k96200exv12w1.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12w1
 

Exhibit 12.1

Residential Capital Corporation
Exhibit 12.1 — Computation of the Ratio of Earnings to Fixed Charges

The following table sets forth our ratio of earnings to fixed charges on a historical basis for the periods indicated and on a pro forma basis for the three months ended March 31, 2005 and the year ended December 31, 2004. The pro forma ratio of earnings to fixed charges assumes the transfer of our subsidiaries to us, the recapitalization transactions, the offering of the old notes and the contemplated use of the proceeds from the offering had occurred as of January 1, 2005 (with respect to the information for the three months ended March 31, 2005) and January 1, 2004 (with respect to the information for 2004). For purposes of computing the ratio of earnings to fixed charges, earnings represent income before taxes and fixed charges. Fixed charges consist of interest expense and one-third of rental expense, which we believe to be representative of the interest portion of rent expense.

                                                                 
    Three Months        
    Ended March 31,     Year Ended December 31,  
           
    Pro Forma             Pro Forma                                
(Dollars in thousands)   2005     2005     2004     2004     2003     2002     2001     2000  
                                               
 
                                                                
Net income
   $ 299,684     $ 321,794     $ 873,566     $ 968,212     $ 856,815     $ 308,575     $ 159,579     $ 211,852  
Income tax expense
     193,502       207,055       584,132       642,140       509,121       199,429       188,888       141,174  
Interest expense
     801,573       765,910       2,557,636       2,404,982       1,402,709       800,895       794,357       746,495  
Interest portion of rental expense
     8,619       8,619       30,631       30,631       29,814       27,288       27,601       26,016  
                                               
 
                                                                
Earnings available to cover fixed charges
   $ 1,303,378     $ 1,303,378     $ 4,045,965     $ 4,045,965     $ 2,798,459     $ 1,336,187     $ 1,170,425     $ 1,125,537  
 
 
                                                                
Fixed Charges:
                                                                
Interest expense
   $ 801,573     $ 765,910     $ 2,557,636     $ 2,404,982     $ 1,402,709     $ 800,895     $ 794,357     $ 746,495  
Interest portion of rental expense
     8,619       8,619       30,631       30,631       29,814       27,288       27,601       26,016  
                                               
 
                                                                
Total fixed charges
   $ 810,192     $ 774,529     $ 2,588,267     $ 2,435,613     $ 1,432,523     $ 828,183     $ 821,958     $ 772,511  
                                               
 
 
                                                                
Ratio of earnings to fixed charges
     1.61       1.68       1.56       1.66       1.95       1.61       1.42       1.46