CALCULATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS ----------------------------------------------------------------------------------------
(in millions)
For the Years Ended December 31 ----------------------------------------------------------- 1996 1995 1994 1993 1992 -------- -------- -------- -------- ------- Earnings -------- Income/(Loss) before income taxes and cumulative effects of changes in accounting principles $ 6,793 $ 6,705 $ 8,789 $ 4,003 $ (127) Equity in net loss/(income) of affiliates plus dividends from affiliates 36 179 (182) (98) 26 Adjusted fixed charges a/ 10,801 10,556 8,122 7,648 8,113 ------- ------- ------- ------- ------- Earnings $17,630 $17,440 $16,729 $11,553 $8,012 ======= ======= ======= ======= ======
Total combined fixed charges and preferred stock dividends $10,914 $11,175 $ 8,684 $ 8,174 $8,566 ======= ======= ======= ======= ======
Ratios ------ Ratio of earnings to fixed charges 1.6 1.6 2.0 1.5 f/ Ratio of earnings to combined fixed charges and preferred stock dividends 1.6 1.6 1.9 1.4 g/
- - - - - 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. (1995 - 1992), 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. Beginning in the fourth quarter 1995, includes requirements related to company-obligated mandatorily redeemable preferred securities of a subsidiary trust. 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 combined fixed charges and preferred stock dividends by $554 million.