1
EXHIBIT 12.3
PACCAR INC AND SUBSIDIARIES
---------------------------
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
-------------------------------------------------
(Thousands of Dollars)
Year Ended December 31
----------------------------------------------------
1993 1992 1991 1990 1989
-------- -------- -------- -------- --------
FIXED CHARGES
Interest expense
PACCAR Inc and
Subsidiaries(1) $ 64,000 $ 71,912 $ 94,264 $118,680 $117,519
Portion of rentals
deemed interest 6,001 6,870 6,785 6,447 5,178
-------- -------- -------- -------- --------
TOTAL FIXED CHARGES $ 70,001 $ 78,782 $101,049 $125,127 $122,697
======== ======== ======== ======== ========
EARNINGS
Income before taxes and
cumulative effect of
change in accounting
method-PACCAR Inc and
Subsidiaries(2)(3) $219,757 $ 91,613 $ 48,344 $ 94,156 $363,359
FIXED CHARGES 70,001 78,782 101,049 125,127 122,697
-------- -------- -------- -------- --------
EARNINGS AS DEFINED $289,758 $170,395 $149,393 $219,283 $486,056
======== ======== ======== ======== ========
RATIO OF EARNINGS
TO FIXED CHARGES 4.14x 2.16x 1.48x 1.75x 3.96x
(1) Exclusive of interest paid to PACCAR.
(2) PACCAR income in 1989 includes a $76.4 million before-tax gain from
the sale of a division and a fleet of railcars.
(3) Includes before-tax earnings of wholly owned subsidiaries and
distributed income received from less than 50% owned subsidiaries.
-31-