EXHIBIT (12)
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
---------------------------------------------
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
-------------------------------------------------
Millions of Dollars
Nine Months Ended
Years Ended June 30 March 31
-------------------------------------------------- -----------------
1996 1997 1998 1999 2000 2000 2001
------ ------ ------ ------ ------ ------ ------
EARNINGS AS DEFINED
- -------------------
Earnings from operations before income taxes
after eliminating undistributed earnings
of equity method investees $4,695 $5,274 $5,704 $5,866 $5,474 $4,620 $4,796
Fixed charges, excluding capitalized interest 576 534 639 751 811 676 676
------ ------ ------ ------ ------ ------ ------
TOTAL EARNINGS, AS DEFINED $5,271 $5,808 $6,343 $6,617 $6,285 $5,296 $5,472
====== ====== ====== ====== ====== ====== ======
FIXED CHARGES, AS DEFINED
- -------------------------
Interest expense including capitalized interest $ 493 $ 457 $ 548 $ 650 $ 792 $ 505 $ 590
1/3 of rental expense 92 77 91 101 89 79 69
------ ------ ------ ------ ------ ------ ------
TOTAL FIXED CHARGES AS DEFINED $ 585 $ 534 $ 639 $ 751 $ 881 $ 584 $ 659
====== ====== ====== ====== ====== ====== ======
RATIO OF EARNINGS TO FIXED CHARGES 9.0 10.9 9.9 8.8 7.1 9.1 8.3