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                                                                      EXHIBIT 12

                         TEXTRON FINANCIAL CORPORATION

                     STATEMENT SETTING FORTH COMPUTATION OF
                       RATIO OF EARNINGS TO FIXED CHARGES



                                            2000       1999       1998       1997       1996
                                          --------   --------   --------   --------   --------
                                                             (In thousands)
                                                                       
Income before income taxes and
  distributions on preferred
  securities............................  $191,996   $128,532   $112,626   $108,079   $ 95,724
                                          --------   --------   --------   --------   --------
FIXED CHARGES:
Interest on debt........................   331,865    203,817    155,126    153,127    146,615
Estimated interest portion of rents.....     1,886      1,515      1,198        879        817
                                          --------   --------   --------   --------   --------
Total fixed charges.....................   333,751    205,332    156,324    154,006    147,432
                                          --------   --------   --------   --------   --------
Adjusted Income.........................   525,747    333,864    268,950    262,085    243,156
Ratio of earnings to fixed charges......     1.58x      1.63x      1.72x      1.70x      1.65x
                                          ========   ========   ========   ========   ========


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(1) The ratio of earnings to fixed charges has been computed by dividing income
    before income taxes and distributions on preferred securities and fixed
    charges by fixed charges. Fixed charges consist of interest on debt and
    one-third rental expense as representative of interest portion of rentals.