EX-12 2 ex_12.htm COMPUTATION OF RATIOS computation of ratios


EXHIBIT 12
 
CATERPILLAR INC.,
CONSOLIDATED SUBSIDIARY COMPANIES,
AND 50%-OWNED UNCONSOLIDATED AFFILIATED COMPANIES
 
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Millions of dollars)
 
YEARS ENDED DECEMBER 31,
 
 
     
2004
  
2003
  
2002
  
2001
  
2000
Profit
  
$
2,035
  
$
1,099
  
$
798
  
$
805
  
$
1,053
Add:
                              
 
Provision for income taxes
    
699
    
384
    
314
    
359
    
439
Profit before taxes
    
2,734
    
1,483
    
1,112
    
1,164
    
1,492
Fixed charges:
                              
 
Interest and other costs related to borrowed funds(1)
    
757
    
724
    
811
    
952
    
991
 
Rentals at computed interest factors(2)
    
92
    
82
    
81
    
86
    
90
Total fixed charges:
    
849
    
806
    
892
    
1,038
    
1,081
Profit before provision for income
taxes and fixed charges
  
$
3,583
  
$
2,289
  
$
2,004
  
$
2,202
  
$
2,573
Ratio of profit to fixed charges
    
4.2
    
2.8
    
2.2
    
2.1
    
2.4
___________
                              
(1) Interest expense as reported in Consolidated Results of Operations plus the Company's proportionate share of 50 percent-owned unconsolidated affiliated companies' interest expense.
(2) Amounts represent those portions of rent expense that are reasonable approximations of interest costs.