EX-12 12 dex12.htm STMT RE COMP OF RATIO OF EARNINGS TO FIXED CHARGES STMT RE COMP OF RATIO OF EARNINGS TO FIXED CHARGES

 

Exhibit 12

 

Morgan Stanley

Ratio of Earnings to Fixed Charges

and Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

(dollars in millions)

 

    

Fiscal Year

    

2002

   

2001

   

2000

   

1999

   

1998

Ratio of Earnings to Fixed Charges

                                   

Earnings:

                                   

Income before income taxes (1)

  

$

4,720

   

$

5,734

   

$

8,554

   

$

7,756

   

$

5,405

Add: Fixed charges, net

   

 

12,136

   

 

20,891

   

 

18,306

   

 

12,598

   

 

13,544

    
  
  
  
  

Income before income taxes and fixed charges, net

   

$

16,856

   

$

26,625

   

$

26,860

   

$

20,354

   

$

18,949

    
  
  
  
  

Fixed Charges:

                                   

Total interest expense

   

$

11,970

   

$

20,755

   

$

18,155

   

$

12,487

   

$

13,444

Interest factor in rents

   

 

165

   

 

162

   

 

154

   

 

111

   

 

100

Dividends on preferred securities subject to mandatory redemption

   

 

87

   

 

50

   

 

28

   

 

28

   

 

20

    
  
  
  
  

Total fixed charges

   

$

12,222

   

$

20,967

   

$

18,337

   

$

12,626

   

$

13,564

    
  
  
  
  

Ratio of earnings to fixed charges

   

 

1.4

   

 

1.3

   

 

1.5

   

 

1.6

   

 

1.4

Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

                                   

Earnings:

                                   

Income before income taxes (1)

  

$

4,720

   

$

5,734

   

$

8,554

   

$

7,756

   

$

5,405

Add: Fixed charges, net

   

 

12,136

   

 

20,891

   

 

18,306

   

 

12,598

   

 

13,544

    
  
  
  
  

Income before income taxes and fixed charges, net

   

$

16,856

   

$

26,625

   

$

26,860

   

$

20,354

   

$

18,949

    
  
  
  
  

Fixed Charges:

                                   

Total interest expense

   

$

11,970

   

$

20,755

   

$

18,155

   

$

12,487

   

$

13,444

Interest factor in rents

   

 

165

   

 

162

   

 

154

   

 

111

   

 

100

Dividends on preferred securities subject to mandatory redemption

   

 

87

   

 

50

   

 

28

   

 

28

   

 

20

Preferred stock dividends

   

 

0

   

 

50

   

 

56

   

 

72

   

 

87

    
  
  
  
  

Total fixed charges and preferred stock dividends

   

$

12,222

   

$

21,017

   

$

18,393

   

$

12,698

   

$

13,651

    
  
  
  
  

Ratio of earnings to fixed charges and preferred stock dividends

   

 

1.4

   

 

1.3

   

 

1.5

   

 

1.6

   

 

1.4

(1)   Income before income taxes does not include dividends on preferred securities subject to mandatory redemption. Fiscal 2001 income before income taxes does not include an extraordinary item or cumulative effect of accounting change. Fiscal 1998 income before income taxes does not include a cumulative effect of accounting change.

 

“Earnings” consist of income before income taxes and fixed charges, less dividends on preferred securities subject to mandatory redemption. “Fixed charges” consist of interest cost, including interest on deposits, dividends on preferred securities subject to mandatory redemption, and that portion of rent expense estimated to be representative of the interest factor. The preferred stock dividend amounts represent pre- tax earnings required to cover dividends on preferred stock.