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)
Nine
Months For the Years Ended December 31
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1994 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 $ 6,570 $ 4,003 $ (127) $(2,587) $ 1,495 $ 6,030
Equity in net (income)/loss of affiliates
plus dividends from affiliates (102) (98) 26 69 171 (137)
Adjusted fixed charges a/ 5,853 7,648 8,113 9,360 9,690 9,032
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Earnings $12,321 $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/ $ 5,605 $ 7,351 $ 7,987 $ 9,326 $ 9,647 $ 8,624
Interest portion of rental expense c/ 195 266 185 124 105 103
Preferred stock dividend requirements of
majority-owned subsidiaries d/ 122 115 77 56 83 16
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Fixed charges 5,922 7,732 8,249 9,506 9,835 8,743
Ford preferred stock dividend requirements e/ 377 442 317 26 0 0
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Total combined fixed charges and
preferred stock dividends $ 6,299 $ 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 2.08 1.5 f/ g/ 1.2 1.7
Ratio of earnings to combined fixed
charges and preferred stock dividends 1.96 1.4 h/ i/ 1.2 1.7
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a/ Fixed charges, as shown below, have been 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.,
have been 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 have
been 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 were inadequate to cover fixed charges by $237 million.
g/ Earnings were inadequate to cover fixed charges by
$2,664 million.
h/ Earnings were inadequate to cover combined fixed charges and
preferred stock dividends by $554 million.
i/ Earnings were inadequate to cover combined fixed charges and
preferred stock dividends by $2,690 million.
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