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 is defined as pretax income from operations adjusted by adding back fixed charges expensed during the period and debt refinancing charges. Fixed charges include debt expense (interest expense and the amortization of deferred financing costs), the estimated interest component of rental expense on operating leases, and capitalized interest.

 

     Year ended December 31,

 
     2003

   2002

   2001

    2000

   1999

 
     (dollars in millions)  

Earnings adjusted for fixed charges:

                                     

Income (loss) before income taxes, and cumulative effect of a change in accounting principle

   $ 288,266    $ 267,257    $ 242,567     $ 39,223    $ (181,826 )

Add:

                                     

Debt expense

     66,828      71,636      72,438       116,637      110,797  

Interest portion of rental expense

     22,927      20,336      18,116       17,140      17,501  

Debt refinancing charges

     26,501      48,930      (1,629 )     5,712         
    

  

  


 

  


       116,256      140,902      88,925       139,489      128,298  
    

  

  


 

  


     $ 404,522    $ 408,159    $ 331,492     $ 178,712    $ (53,528 )
    

  

  


 

  


Fixed charges:

                                     

Debt expense

     66,828      71,636      72,438       116,637      110,797  

Interest portion of rental expense

     22,927      20,336      18,116       17,140      17,501  

Capitalized interest

     1,523      1,888      751       1,125      709  
    

  

  


 

  


     $ 91,278    $ 93,860    $ 91,305     $ 134,902    $ 129,007  
    

  

  


 

  


                                       
                                       

Ratio of earnings to fixed charges

     4.43      4.35      3.63       1.32      (a)  
    

  

  


 

  



(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 $182,535 to achieve a coverage of 1:1.