COMPAQ COMPUTER CORP, 8-K, EX-12.1, 2000-07-28

Exhibit 12.1

Compaq Computer Corp.
Ratio of Earnings to Fixed Charges
(in millions, except ratios)


		Three
		Months
		Ended		Year Ended
		March 31,		December 31,
		2000		1999			1998			1997		1996		1995

Fixed Charges
Interest expensed and capitalized			57		148			167			171		114		101




	Interest element of rentals		30		93			68			45		42		41




	Preferred dividends of a consolidated subsidiary (1)		—		15			19			—		—		—

Total Fixed Charges			87		256			254			216		156		142












Earnings
Income (loss) before provision for income taxes			478		934			(2,662	)		2,758		1,883		1,326




	Loss from equity investees		29		52			—			—		—		—




	Fixed charges less interest capitalized		87		256			253			213		148		135




	Amortization of interest capitalized		1		3			2			2		1		—

Total Earnings			595		1,245			(2,407	)		2,973		2,032		1,461








Ratio of Earnings to Fixed Charges			6.8		4.9	(2)		N/A	(3)		13.8		13.0		10.3

(1)		Represents preferred stock acquired in 1998 in connection with the acquisition of Digital Equipment Corporation (“Digital”). The preferred stock was redeemed in April 1999.




(2)		Excluding the $1.2 billion gain on sale of businesses and the $868 million charge for restructuring and related charges, the ratio of earnings to fixed charges was 3.6.




(3)		Earnings were inadequate to cover fixed charges in 1998 by $2.7 billion. Excluding the $3.2 billion charge, associated with purchased in-process technology related to the acquisition of Digital and the $393 million charge for restructuring and related charges, the ratio of earnings to fixed charges was 4.7.