Exhibit 12B
Ford Motor Company and Subsidiaries
CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
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(in millions)
First
Quarter For the Years Ended December 31
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1995 1994 1993 1992 1991 1990
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Earnings
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Income/(loss) before income taxes and
cumulative effects of changes in accounting
principles $2,579 $ 8,789 $ 4,003 $ (127) $(2,587) $ 1,495
Equity in net (income)/loss of affiliates
plus dividends from affiliates (14) (182) (98) 26 69 171
Adjusted fixed charges a/ 2,433 8,122 7,648 8,113 9,360 9,690
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Earnings $4,998 $16,729 $11,553 $ 8,012 $ 6,842 $11,356
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Combined Fixed Charges and
Preferred Stock Dividends
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Interest expense b/ $2,351 $ 7,787 $ 7,351 $ 7,987 $ 9,326 $ 9,647
Interest portion of rental expense c/ 67 265 266 185 124 105
Preferred stock dividend requirements of
majority-owned subsidiaries d/ 51 160 115 77 56 83
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Fixed charges 2,469 8,212 7,732 8,249 9,506 9,835
Ford preferred stock dividend requirements e/ 117 472 442 317 26 0
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Total combined fixed charges and
preferred stock dividends $2,586 $ 8,684 $ 8,174 $ 8,566 $ 9,532 $ 9,835
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Ratios
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Ratio of earnings to fixed charges 2.0 2.0 1.5 f/ g/ 1.2
Ratio of earnings to combined fixed
charges and preferred stock dividends 1.9 1.9 1.4 h/ i/ 1.2
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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.