EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

 

SWS Group, Inc. and Subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(In thousands, except ratio)

 

     Fiscal Years Ended
    

June 25,

2004

   

June 27,

2003

   

June 28,

2002

    

June 29,

2001

   

June 30,

2000

Income (loss) before income taxes and minority interest in consolidated subsidiaries

    $ 9,292    $ 5,015    $ (7,385 )   $ 34,962    $ 137,905
    
  
  
 
  

Add fixed charges:

                                    

Interest expense

      33,324      39,885      65,807       171,578      178,084

Interest factor in rents (1)

      3,595      5,759      7,798       6,608      4,770
    
  
  
 
  

Total fixed charges

      36,919      45,644      73,605       178,186      182,854
    
  
  
 
  

Earnings before fixed charges and income taxes

    $ 46,211    $ 50,659    $ 66,220     $ 213,148    $ 320,759
    
  
  
 
  

Ratio of earnings to fixed charges (2)

      1.3      1.1      —         1.2      1.8
    
  
  
 
  

Deficiency of earnings available to cover fixed charges

      —        —      $ (7,385 )     —        —  
    
  
  
 
  
(1) SWS estimates that one-third of rental expense is representative of the interest factor.
(2) Due to SWS’ net loss before income taxes and minority interest in consolidated subsidiaries in 2002, the coverage ratio was less than 1:1.