EXHIBIT 12 WASTE MANAGEMENT, INC. Ratio of Earnings to Fixed Charges (Unaudited) (millions of dollars, except ratio) Nine Months Ended September 30 ---------------------- 1996(1) 1997(1) --------- --------- Income From Continuing Operations Before Income Taxes, Undistributed Earnings from Affiliated Companies and Minority Interest.................. $ 1,060.9 898.6 Interest Expense................................... 363.3 353.8 Capitalized Interest............................... (53.3) (44.3) One-Third of Rents Payable in the Next Year........ 39.3 35.7 --------- --------- Income From Continuing Operations Before Income Taxes, Undistributed Earnings from Affiliated Companies, Minority Interest, Interest and One-Third of Rents............................... $ 1,410.2 $ 1,243.8 ========= ========= Interest Expense................................... $ 363.3 $ 353.8 One-Third of Rents Payable in the Next Year........ 39.3 35.7 --------- --------- Interest Expense plus One-Third of Rents........... $ 402.6 $ 389.5 ========= ========= Ratio of Earnings to Fixed Charges................. 3.50 to 1 3.19 to 1 - --------------- (1) As revised. See "Notes to Consolidated Financial Statements - Revisions."