Enter the dividends per share ($) and the earnings per share ($) into the Plowback Ratio Calculator. The calculator will evaluate and display the Plowback Ratio. 

Plowback Ratio Formula

The following formula is used to calculate the Plowback Ratio. 

PLBR = 1 - (DPS/EPS)
  • Where PLBR is the Plowback Ratio
  • DPS is the dividends per share ($) 
  • EPS is the earnings per share ($) 

To calculate the blowback ratio, subtract the result of the dividends per share divided by the earnings per share from a value of 1.

How to Calculate Plowback Ratio?

The following example problems outline how to calculate Plowback Ratio.

Example Problem #1:

  1. First, determine the dividends per share ($).
    • The dividends per share ($) is given as: 37.
  2. Next, determine the earnings per share ($).
    • The earnings per share ($) is provided as: 80.
  3. Finally, calculate the Plowback Ratio using the equation above: 

PLBR = 1 – (DPS/EPS)

The values given above are inserted into the equation below and the solution is calculated:

PLBR = 1 – (37/80) = .5375

Example Problem #2: 

For this problem, the variables required are provided below:

dividends per share ($) = 70

earnings per share ($) = 150

Test your knowledge using the equation and check your answer with the calculator above.

PLBR = 1 – (DPS/EPS) = ?