1 EXHIBIT 12 NAPCO SECURITY SYSTEMS, INC. AND SUBSIDIARIES COMPUTATION OF RATIOS 1997 1996 1995 ---- ---- ---- (In thousands, except for ratios) A. Current Assets $42,021 $41,529 $39,916 B. Current Liabilities 11,885 12,853 11,256 Current Ratio (Line A / Line B) 3.5 to 1 3.2 to 1 3.5 to 1 C. Net Sales $53,302 $49,088 $48,078 D. Receivables 13,937 13,759 13,647 Ratio (Line C / Line D) 3.8 to 1 3.6 to 1 3.5 to 1 E. Total Current Liabilities $11,885 $12,853 $11,256 F. Long Term Debt 13,313 14,150 15,275 G. Deferred Income Taxes 828 742 648 H. Total Liabilities 26,026 27,745 27,179 I. Equity 31,218 29,574 28,560 Ratio (Line H / Line I) .8 to 1 .9 to 1 1 to 1 E-68