Exhibit 12
Ford Motor Company and Subsidiaries
CALCULATION OF RATIO OF EARNINGS TO COMBINED
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
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(in millions)
For the Years Ended December 31
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1993 1992 1991 1990 1989
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Earnings
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Income/(loss) before income taxes
and cumulative effects of changes
in accounting principles $ 4,003 $ (127) $(2,587) $ 1,495 $ 6,030
Equity in net (income)/loss of
affiliates plus dividends from
affiliates (98) 26 69 171 (137)
Adjusted fixed charges a/
7,648 8,113 9,360 9,690 9,032
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Earnings $11,553 $ 8,012 $ 6,842 $11,356 $14,925
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Combined Fixed Charges and
Preferred Stock Dividends
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Interest expense b/ $ 7,351 $ 7,987 $ 9,326 $ 9,647 $ 8,624
Interest portion of rental
expense c/ 266 185 124 105 103
Preferred stock dividend
requirements
of majority-owned
subsidiaries d/ 155 77 56 83 16
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Fixed charges 7,732 8,249 9,506 9,835 8,743
Ford preferred stock dividend
requirements e/ 442 317 26 0 0
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Total combined fixed charges
and preferred stock dividends $ 8,174 $ 8,566 $ 9,532 $ 9,835 $ 8,743
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Ratios
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Ratio of earnings to fixed
charges 1.5 f/ g/ 1.2 1.7
Ratio of earnings to
combined fixed charges
and preferred stock dividends 1.4 h/ i/ 1.2 1.7
- - - - - -
a/ Fixed charges, as shown below, adjusted to exclude the amount of interest
capitalized during the period and preferred stock dividend requirements
of majority-owned subsidiaries.
b/ Includes interest, whether expensed or capitalized, and amortization of debt
expense and discount or premium relating to any indebtedness.
c/ One-third of all rental expense is deemed to be interest.
d/ Preferred stock dividend requirements of Ford Holdings, Inc., increased to
an amount representing the pre-tax earnings which would be required to
cover such dividend requirements based on Ford's effective
income tax rates for all periods except 1992. The U.S. statutory rate of
34% was used for 1992.
e/ Preferred stock dividend requirements of Ford Motor Company, increased to
an amount representing the pre-tax earnings which would be required
to cover such dividend requirements based on Ford's effective
income tax rates for all periods except 1992. The U.S. statutory rate of
34% was used for 1992.
f/ Earnings inadequate to cover fixed charges by $237 million.
g/ Earnings inadequate to cover fixed charges by $2,664 million
h/ Earnings inadequate to cover combined fixed charges and preferred stock
dividends by $554 million.
i/ Earnings inadequate to cover combined fixed charges and preferred stock
dividends by $2,690 million.