EXHIBIT 12
THE BEAR STEARNS COMPANIES INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(IN THOUSANDS, EXCEPT FOR RATIO)
(Unaudited)
Nine months Ended Fiscal Year Ended
----------------------- ---------------------------------------------------------
August 31, August 31, November 30, November 30, November 30, November 30,
2004 2003 2003 2002 2001 2000
---------- ---------- ------------ ------------ ------------ ------------
Earnings before taxes on income $1,486,333 $1,335,506 $ 1,772,269 $ 1,310,963 $ 934,444 $ 1,171,523
---------- ---------- ------------ ------------ ------------ ------------
Add: Fixed Charges
Interest 1,055,370 1,067,184 1,400,953 1,762,580 3,793,998 4,772,286
Interest factor in rents 27,117 26,838 36,038 37,735 33,500 32,200
---------- ---------- ------------ ------------ ------------ ------------
Total fixed charges 1,082,487 1,094,022 1,436,991 1,800,315 3,827,498 4,804,486
---------- ---------- ------------ ------------ ------------ ------------
Earnings before fixed charges
and taxes on income $2,568,820 $2,429,528 $ 3,209,260 $ 3,111,278 $ 4,761,942 $ 5,976,009
========== ========== ============ ============ ============ ============
Preferred stock dividend
requirements $ 32,144 $ 36,277 $ 48,084 $ 53,142 $ 59,074 $ 59,264
Total combined fixed charges
and preferred stock dividends $1,114,631 $1,130,299 $ 1,485,075 $ 1,853,457 $ 3,886,572 $ 4,863,750
========== ========== ============ ============ ============ ============
Ratio of earnings to fixed charges 2.4 2.2 2.2 1.7 1.2 1.2
---------- ---------- ------------ ------------ ------------ ------------
Ratio of earnings to combined
fixed charges and preferred
stock dividends 2.3 2.1 2.2 1.7 1.2 1.2
---------- ---------- ------------ ------------ ------------ ------------
Five Fiscal
Months Ended Year Ended
------------ ----------
November 26, June 30,
1999 1999
------------ ----------
Earnings before taxes on income $ 453,592 $1,064,108
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Add: Fixed Charges
Interest 1,524,046 3,344,190
Interest factor in rents 12,783 31,363
------------ ----------
Total fixed charges 1,536,829 3,375,553
------------ ----------
Earnings before fixed charges
and taxes on income $ 1,990,421 $4,439,661
============ ==========
Preferred stock dividend
requirements $ 25,863 $ 62,340
Total combined fixed charges
and preferred stock dividends $ 1,562,692 $3,437,893
============ ==========
Ratio of earnings to fixed charges 1.3 1.3
------------ ----------
Ratio of earnings to combined
fixed charges and preferred
stock dividends 1.3 1.3
------------ ----------
68