1
Exhibit 12
Ford Motor Company and Subsidiaries
CALCULATION OF RATIO OF EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(in millions)
For the Years Ended December 31
----------------------------------------------------------
1994 1993 1992 1991 1990
-------- -------- -------- -------- --------
Earnings
- --------
Income/(loss) before income taxes
and cumulative effects of changes
in accounting principles $ 8,789 $ 4,003 $ (127) $(2,587) $ 1,495
Equity in net (income)/loss of
affiliates plus dividends from
affiliates (182) (98) 26 69 171
Adjusted fixed charges a/ 8,122 7,648 8,113 9,360 9,690
------- ------- ------- ------- -------
Earnings $16,729 $11,553 $ 8,012 $ 6,842 $11,356
======= ======= ======= ======= =======
Combined Fixed Charges and
Preferred Stock Dividends
- --------------------------
Interest expense b/ $ 7,787 $ 7,351 $ 7,987 $ 9,326 $ 9,647
Interest portion of rental expense c/ 265 266 185 124 105
Preferred stock dividend requirements
of majority-owned subsidiaries d/ 160 115 77 56 83
------- ------- ------- ------- -------
Fixed charges 8,212 7,732 8,249 9,506 9,835
Ford preferred stock dividend
requirements e/ 472 442 317 26 0
------- ------- ------- ------- -------
Total combined fixed charges
and preferred stock dividends $ 8,684 $ 8,174 $ 8,566 $ 9,532 $ 9,835
======= ======= ======= ======= =======
Ratios
- ------
Ratio of earnings to fixed charges 2.0 1.5 f/ g/ 1.2
Ratio of earnings to combined fixed
charges and preferred stock dividends 1.9 1.4 h/ i/ 1.2
- - - - - -
a/ Fixed charges, as shown below, adjusted to exclude the amount of interest
capitalized during the period and preferred stock dividend requirements of
majority-owned subsidiaries.
b/ Includes interest, whether expensed or capitalized, and amortization of debt
expense and discount or premium relating to any indebtedness.
c/ One-third of all rental expense is deemed to be interest.
d/ Preferred stock dividend requirements of Ford Holdings, Inc., increased to
an amount representing the pre-tax earnings which would be required to
cover such dividend requirements based on Ford's effective income tax rates
for all periods except 1992. The U.S. statutory rate of 34% was used for
1992.
e/ Preferred stock dividend requirements of Ford Motor Company, increased to an
amount representing the pre-tax earnings which would be required to cover
such dividend requirements based on Ford's effective income tax rates for
all periods except 1992. The U.S. statutory rate of 34% was used for 1992.
f/ Earnings inadequate to cover fixed charges by $237 million.
g/ Earnings inadequate to cover fixed charges by $2,664 million.
h/ Earnings inadequate to cover combined fixed charges and preferred stock
dividends by $554 million.
i/ Earnings inadequate to cover combined fixed charges and preferred stock
dividends by $2,690 million.