United Parcel Service (UPS) 10-Q 2005 Q2 Quarterly report

Exhibit 12

United Parcel Service, Inc. and Subsidiaries

Ratio of Earnings to Fixed Charges

(in millions)	Six Months Ended June 30,
	2005		2004
Earnings:
Earnings before income taxes and accounting changes	$	2,919	$	2,484
Add: Interest expense		83		74
Add: One-third of rental expense (a)		123		115
Total earnings	$	3,125	$	2,673
Fixed Charges:
Interest expense	$	83	$	74
Interest capitalized		15		12
One-third of rental expense (a)		123		115
Total fixed charges	$	221	$	201
Ratio of Earnings to Fixed Charges		14.1		13.3

(a) Considered to be representative of interest factor in rental expense.