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EXHIBIT 12-B
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
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1995 1994 1993 1992 1991
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EARNINGS
Income/(Loss) before income taxes and
cumulative effects of changes in
accounting principles............... $ 6,705 $ 8,789 $ 4,003 $ (127) $(2,587)
Equity in net loss/(income) of
affiliates plus dividends from
affiliates.......................... 179 (182) (98) 26 69
Adjusted fixed charges(a).............. 10,556 8,122 7,648 8,113 9,360
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Earnings............................ $17,440 $16,729 $11,553 $8,012 $ 6,842
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COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
Interest expense(b).................... $10,121 $ 7,787 $ 7,351 $7,987 $ 9,326
Interest portion of rental
expense(c).......................... 396 265 266 185 124
Preferred stock dividend requirements
of majority owned subsidiaries(d)... 199 160 115 77 56
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Fixed charges....................... 10,716 8,212 7,732 8,249 9,506
Ford preferred stock dividend
requirements(e)........................ 459 472 442 317 26
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Total combined fixed charges and
preferred stock dividends........... $11,175 $ 8,684 $ 8,174 $8,566 $ 9,532
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RATIOS
Ratio of earnings to fixed charges..... 1.6 2.0 1.5 (f) (g)
Ratio of earnings to combined fixed
charges and preferred stock
dividends........................... 1.6 1.9 1.4 (h) (i)
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(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 and trusts.
(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.