Exhibit 12.1
COUNTRYWIDE FINANCIAL CORPORATION AND SUBSIDIARIES
EXHIBIT 12.1 – COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the ratio of earnings to fixed charges of the Company for the six months ended June 30, 2007 and 2006 and the years ended December 31, 2006, 2005, 2004, 2003, and 2002, computed by dividing net fixed charges (interest expense on all debt plus the interest element (one-third) of operating leases) into earnings (earnings before income taxes and fixed charges).
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Six Months Ended |
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Years Ended |
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(dollar amounts in thousands) |
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2007 |
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2006 |
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2006 |
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2005 |
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2004 |
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2003 |
|
2002 |
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Net earnings |
|
$ |
919,049 |
|
$ |
1,405,701 |
|
$ |
2,674,846 |
|
$ |
2,528,090 |
|
$ |
2,197,574 |
|
$ |
2,372,950 |
|
$ |
841,779 |
|
Income tax expense |
|
446,444 |
|
907,685 |
|
1,659,289 |
|
1,619,676 |
|
1,398,299 |
|
1,472,822 |
|
501,244 |
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Interest expense |
|
5,392,693 |
|
4,054,429 |
|
9,133,682 |
|
5,616,425 |
|
2,608,338 |
|
1,940,207 |
|
1,461,066 |
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Interest portion of rental expense |
|
43,218 |
|
36,272 |
|
77,055 |
|
62,104 |
|
53,562 |
|
36,565 |
|
26,671 |
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Earnings available to cover fixed charges |
|
$ |
6,801,404 |
|
$ |
6,404,087 |
|
$ |
13,544,872 |
|
$ |
9,826,295 |
|
$ |
6,257,773 |
|
$ |
5,822,544 |
|
$ |
2,830,760 |
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|
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Fixed charges: |
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Interest expense |
|
$ |
5,392,693 |
|
$ |
4,054,429 |
|
$ |
9,133,682 |
|
$ |
5,616,425 |
|
$ |
2,608,338 |
|
$ |
1,940,207 |
|
$ |
1,461,066 |
|
Interest portion of rental expense |
|
43,218 |
|
36,272 |
|
77,055 |
|
62,104 |
|
53,562 |
|
36,565 |
|
26,671 |
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Total fixed charges |
|
$ |
5,435,911 |
|
$ |
4,090,701 |
|
$ |
9,210,737 |
|
$ |
5,678,529 |
|
$ |
2,661,900 |
|
$ |
1,976,772 |
|
$ |
1,487,737 |
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|
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Ratio of earnings to fixed charges |
|
1.25 |
|
1.57 |
|
1.47 |
|
1.73 |
|
2.35 |
|
2.95 |
|
1.90 |
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