1 EXHIBIT 12.3 PACCAR Inc COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES PURSUANT TO SEC REPORTING REQUIREMENTS (Thousands of Dollars) Nine Months Ended September 30 1995 1994 - --------------------------------------------------------------------------------------------------------------------------- FIXED CHARGES Interest expense PACCAR Inc and subsidiaries (1) $ 90,393 $ 62,001 Portion of rentals deemed interest 4,295 4,121 - --------------------------------------------------------------------------------------------------------------------------- TOTAL FIXED CHARGES $ 94,688 $ 66,122 - --------------------------------------------------------------------------------------------------------------------------- EARNINGS Income before taxes - PACCAR Inc and subsidiaries $295,655 $230,205 Fixed charges 94,688 66,122 - --------------------------------------------------------------------------------------------------------------------------- EARNINGS AS DEFINED $390,343 $296,327 - --------------------------------------------------------------------------------------------------------------------------- RATIO OF EARNINGS TO FIXED CHARGES 4.12X 4.48X - --------------------------------------------------------------------------------------------------------------------------- (1) Exclusive of interest, if any, paid to PACCAR Inc. -13-