EXHIBIT 12
                                  
                                  
                                  
                                  
             CATERPILLAR FINANCIAL SERVICES CORPORATION
                                  
               STATEMENT SETTING FORTH COMPUTATION OF
                  RATIO OF PROFIT TO FIXED CHARGES
                             (Unaudited)
                        (Dollars in Millions)
                                  
          
                                           Years ended December 31,
          
                                      1997      1996      1995
                                                          
Net Income                         $  94.2   $  75.6   $  65.2
                                                              
Add:                                                          
  Provision for income taxes          53.5      40.2      38.5
                                                              
Deduct:                                                       
  Equity in profit of                (2.6)     (2.2)     (1.4)
partnerships
                                                              
Profit before taxes                $ 145.1   $ 113.6   $ 102.3
                                                              
Fixed charges:                                                
  Interest on borrowed funds       $ 366.7   $ 315.4   $ 298.4
  Rentals at computed interest*        3.2       2.5       1.8
                                                              
Total fixed charges                $ 369.9   $ 317.9   $ 300.2
                                                              
Profit before taxes plus fixed     $ 515.0   $ 431.5   $ 402.5
charges
                                                              
Ratio of profit before taxes                                  
plus                                  1.39      1.36      1.34
  fixed charges to fixed charges
     
*Those portions of rent expense that are representative of interest
cost.