EXHIBIT 12.1
 
DAVITA INC.
 
RATIO OF EARNINGS TO FIXED CHARGES
 
          The ratio of earnings to fixed charges is computed by dividing fixed charges into earnings. Earnings is defined as pretax income from continuing operations adjusted by adding fixed charges and excluding interest capitalized during the period. Fixed charges means the total of interest expense, amortization of financing costs, and the estimated interest component of rental expense on operating leases.
 
  
Nine months ended
September 30,
2001

 
Year ended December 31,

    
2000

 
1999

    
1998

  
1997

  
1996

  
(dollars in thousands)
Income (loss) before income
     taxes, extraordinary items and
     cumulative effect of a change
     in accounting principle
    
$183,480
   
$   44,935
 
$(181,826
)
    
$   48,641
  
$   81,178
  
$54,563
    
   
 
    
  
  
Fixed charges:
          
 
          
          Interest expense and
               amortization of debt
               issuance costs and
               discounts on all
               indebtedness
    
56,758
   
116,637
 
110,797
    
84,003
  
29,082
  
13,670
          Interest portion of rental
               expense
    
13,399
   
17,140
 
17,501
    
12,992
  
8,196
  
5,301
    
   
 
    
  
  
                   Total fixed charges
    
70,157
   
133,777
 
128,298
    
96,995
  
37,278
  
18,971
    
   
 
    
  
  
Earnings (loss) before income
     taxes, extraordinary items,
     cumulative effect of a change
     in accounting principle and
     fixed charges
    
$253,637
   
$178,712
 
$   (53,528
)
    
$145,636
  
$118,456
  
$73,534
    
   
 
    
  
  
Ratio of earnings to fixed charges
    
3.62
   
1.34
 
    
(a)
    
1.50
  
3.18
  
3.88
    
   
 
    
  
  

(a)
 
Due to the Company’s loss in 1999, the ratio coverage was less than 1:1. The Company would have had to generate additional earnings of $181,826 to achieve a coverage of 1:1.