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 ($)
- EPS is the earnings per share ($)
How to Calculate Plowback Ratio?
The following example problems outline how to calculate Plowback Ratio.
Example Problem #1:
- First, determine the dividends per share ($).
- The dividends per share ($) is given as: 37.
- Next, determine the earnings per share ($).
- The earnings per share ($) is provided as: 80.
- 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) = ?
