EX-12.1 6 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of earnings to fixed charges

Exhibit 12.1

DAVITA INC.

RATIO OF EARNINGS TO FIXED CHARGES

The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. Earnings for this purpose are defined as pretax income from continuing operations adjusted by adding back fixed charges expensed during the period. Fixed charges include debt expense (interest expense and the amortization of deferred financing costs), the estimated interest component of rent expense on operating leases, and capitalized interest.

 

     Three months
ended

March 31,
2008
   Year ended December 31,
        2007    2006    2005    2004    2003
          (dollars in thousands)

Earnings adjusted for fixed charges:

                 

Income from continuing operations before income taxes

   $ 142,524    $ 627,522    $ 475,759    $ 331,097    $ 332,840    $ 269,651

Add:

                 

Debt expense

     59,066      257,147      276,706      139,586      52,411      66,821

Interest portion of rent expense

     17,338      64,613      60,395      35,189      24,305      21,685
                                         
     76,404      321,760      337,101      174,775      76,716      88,506
                                         
   $ 218,928    $ 949,282    $ 812,860    $ 505,872    $ 409,556    $ 358,157
                                         

Fixed charges:

                 

Debt expense

   $ 59,066    $ 257,147    $ 276,706    $ 139,586    $ 52,411    $ 66,821

Interest portion of rent expense

     17,338      64,613      60,395      35,189      24,305      21,685

Capitalized interest

     748      3,878      4,708      1,912      1,078      1,523
                                         
   $ 77,152    $ 325,638    $ 341,809    $ 176,687    $ 77,794    $ 90,029
                                         

Ratio of earnings to fixed charges

     2.84      2.92      2.38      2.86      5.26      3.98