EXHIBIT (12) THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES ============================================= COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES ------------------------------------------------- Millions of Dollars Nine Months Years Ended June 30 Ended Mar. 31 ------------------------------------------------ ------------------- 1990 1991 1992 1993 1994 1994 1995 --------- --------- --------- --------- --------- --------- --------- EARNINGS AS DEFINED - ------------------- Earnings from operations before income taxes after eliminating undistributed earnings of 20% to 50% owned affiliates $2,401 $2,652 $2,870 $ 294 $3,307 $2,761 $3,357 Fixed charges excluding capitalized interest 480 435 584 631 569 430 438 -------- -------- -------- -------- -------- -------- -------- TOTAL EARNINGS, AS DEFINED $2,881 $3,087 $3,454 $ 925 $3,876 $3,191 $3,795 ======== ======== ======== ======== ======== ======== ======== FIXED CHARGES, AS DEFINED - ------------------------- Interest expense $ 442 $ 395 $ 510 $ 552 $ 482 $ 367 $ 368 1/3 of rental expense 38 40 74 79 87 63 70 -------- -------- -------- -------- -------- -------- -------- 480 435 584 631 569 430 438 Capitalized interest 3 17 25 25 19 15 8 -------- -------- -------- -------- -------- -------- -------- TOTAL FIXED CHARGES, AS DEFINED $ 483 $ 452 $ 609 $ 656 $ 588 $ 445 $ 446 ======== ======== ======== ======== ======== ======== ======== RATIO OF EARNINGS TO FIXED CHARGES 6.0 6.8 5.7 1.4 6.6 7.2 8.5 -11-