Exhibit 12
John Deere Capital Corporation and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(thousands of dollars)
Nine Months Ended July 31,
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1998 1997
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Earnings:
Income before income
taxes and changes
in accounting $159,519 $149,742
Fixed charges 278,524 239,501
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Total earnings $438,043 $389,243
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Fixed charges:
Interest expense $274,837 $236,734
Rent expense 3,687 2,767
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Total fixed
charges $278,524 $239,501
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Ratio of earnings to
fixed charges * 1.57 1.63
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For the Years Ended October 31,
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1997 1996 1995 1994 1993
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Earnings:
Income before income
taxes and changes
in accounting $211,251 $206,588 $175,360 $161,809 $169,339
Fixed charges 330,648 276,726 240,913 168,507 170,226
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Total earnings $541,899 $483,314 $416,273 $330,316 $339,565
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Fixed charges:
Interest expense $326,867 $273,748 $238,445 $166,591 $167,787
Rent expense 3,782 2,978 2,468 1,916 2,439
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Total fixed
charges $330,649 $276,726 $240,913 $168,507 $170,226
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Ratio of earnings to
fixed charges * 1.64 1.75 1.73 1.96 1.99
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"Earnings" consist of income before income taxes, the
cumulative effect of changes in accounting and fixed charges.
"Fixed charges" consist of interest on indebtedness,
amortization of debt discount and expense, an estimated amount
of rental expense under capitalized leases which is deemed to
be representative of the interest factor and rental expense
under operating leases.
* The Company has not issued preferred stock. Therefore, the
ratios of earnings to combined fixed charges and preferred
stock dividends are the same as the ratios presented above.