EXHIBIT (12)
THE PROCTER & GAMBLE COMPANY AND SUBSIDIARIES
=============================================
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
-------------------------------------------------
Millions of Dollars
Three Months Ended
Years Ended June 30 September 30
----------------------------------------------------------------------------
1995 1996 1997 1998 1999 1998 1999
------ ------ ------ ------ ------ ------ ------
EARNINGS AS DEFINED
- -------------------
Earnings from operations before income $4,022 $4,695 $5,274 $5,704 $5,866 $1,676 $1,763
taxes after eliminating undistributed
earnings of equity method investees
Fixed charges, excluding capitalized interest 571 576 534 639 751 181 04
------ ------ ------ ------ ------ ------ ------
TOTAL EARNINGS, AS DEFINED $4,593 $5,271 $5,808 $6,343 $6,617 $1,857 $1,967
====== ====== ====== ====== ====== ====== ======
FIXED CHARGES, AS DEFINED
- -------------------------
Interest expense including capitalized interest $ 511 $ 493 $ 457 $ 548 $ 650 $ 157 $ 147
1/3 of rental expense 83 92 77 91 101 24 26
------ ------ ------ ------ ------ ------ ------
TOTAL FIXED CHARGES AS DEFINED $ 594 $ 585 $ 534 $ 639 $ 751 $ 181 $ 173
====== ====== ====== ====== ====== ====== ======
RATIO OF EARNINGS TO FIXED CHARGES 7.7 9.0 10.9 9.9 8.8 10.3 11.4