EXHIBIT (12)
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
=============================================
Computation of Ratio of Earnings to Fixed Charges
-------------------------------------------------
Millions of Dollars
Years Ended June 30
---------------------------------------------------
1993 1994 1995 1996 1997
------ ------ ------ ------ ------
EARNINGS AS DEFINED
- -------------------
Earnings from operations before income taxes
after eliminating undistributed earnings
of equity method investees $ 294 $3,307 $4,022 $4,695 $5,274
Fixed charges, excluding capitalized interest 631 569 571 576 534
------ ------ ------ ------ ------
TOTAL EARNINGS, AS DEFINED $ 925 $3,876 $4,593 $5,271 $5,808
====== ====== ====== ====== ======
FIXED CHARGES, AS DEFINED
- -------------------------
Interest expense (including capitalized interest) $ 577 $ 501 $ 511 $ 493 $ 457
1/3 of rental expense 79 87 83 92 77
------ ------ ------ ------ ------
TOTAL FIXED CHARGES, AS DEFINED $ 656 $ 588 $ 594 $ 585 $ 534
====== ====== ====== ====== ======
RATIO OF EARNINGS TO FIXED CHARGES 1.4 6.6 7.7 9.0 10.9