EX-12 2 dex12.htm EXHIBIT 12 Exhibit 12

Exhibit 12

LEGG MASON, INC. AND SUBSIDIARIES

Computation of Consolidated Ratios of Earnings to Fixed Charges

(Dollars in thousands)

 

     Years Ended March 31,
     2007    2006    2005    2004    2003

Earnings from continuing operations before income tax provision

    $ 1,043,854    $ 715,462    $ 470,758    $ 301,563    $ 181,202

Fixed Charges:

               

Interest Expense

      71,474      52,648      44,765      44,734      52,654

Portion of rental expenses representative of interest factor*

      32,383      15,969      9,237      7,736      7,734
                                  

Earnings available for fixed charges

    $ 1,147,711    $ 784,079    $ 524,760    $ 354,033    $ 241,590
                                  

Fixed Charges:

               

Interest Expense

    $ 71,474    $ 52,648    $ 44,765    $ 44,734    $ 52,654

Portion of rental expense representative of interest factor*

      32,383      15,969      9,237      7,736      7,734
                                  

Total Fixed Charges

    $ 103,857    $ 68,617    $ 54,002    $ 52,470    $ 60,388
                                  

Consolidated ratio of earnings to fixed charges

      11.1      11.4      9.7      6.7      4.0
                                  
 

* The portion of rental expense representative of interest factor is calculated as one third of the total of Rent, Marketing Data Services, Maintenance, DP Service Bureau and Equipment Rental expenses.