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 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 March 31, |
Year ended December 31, | |||||||||||||||||
| 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
| (dollars in thousands) | ||||||||||||||||||
| Earnings adjusted for fixed charges: |
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| Income from continuing operations before income taxes |
$ | 127,642 | $ | 475,759 | $ | 331,097 | $ | 332,840 | $ | 269,651 | $ | 249,105 | ||||||
| Add: |
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| Debt expense |
68,870 | 276,706 | 139,586 | 52,411 | 66,821 | 71,612 | ||||||||||||
| Interest portion of rent expense |
15,416 | 60,395 | 35,189 | 24,305 | 21,685 | 19,259 | ||||||||||||
| 84,286 | 337,101 | 174,775 | 76,716 | 88,506 | 90,871 | |||||||||||||
| $ | 211,928 | $ | 812,860 | $ | 505,872 | $ | 409,556 | $ | 358,157 | $ | 339,976 | |||||||
| Fixed charges: |
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| Debt expense |
$ | 68,870 | $ | 276,706 | $ | 139,586 | $ | 52,411 | $ | 66,821 | $ | 71,612 | ||||||
| Interest portion of rent expense |
15,416 | 60,395 | 35,189 | 24,305 | 21,685 | 19,259 | ||||||||||||
| Capitalized interest |
934 | 4,708 | 1,912 | 1,078 | 1,523 | 1,888 | ||||||||||||
| $ | 85,220 | $ | 341,809 | $ | 176,687 | $ | 77,794 | $ | 90,029 | $ | 92,759 | |||||||
| Ratio of earnings to fixed charges |
2.49 | 2.38 | 2.86 | 5.26 | 3.98 | 3.67 | ||||||||||||