Exhibit 12


                          TEXTRON FINANCIAL CORPORATION
    STATEMENT SETTING FORTH COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

                                                              NINE MONTHS ENDED
                                                             SEPTEMBER 30, 2004

Income before income taxes.................................      $      95
                                                                 ---------

FIXED CHARGES:

Interest on debt...........................................            111
Estimated interest portion of rents........................              2
                                                                 ---------
Total fixed charges........................................            113
                                                                 ---------
Adjusted income............................................            208

Ratio of earnings to fixed charges (1).....................          1.84x
                                                                 =========

(1)   The ratio of earnings to fixed charges has been computed by dividing
      income before income taxes 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.




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