Exhibit 11 THE TORO COMPANY AND SUBSIDIARIES COMPUTATION OF EARNINGS PER COMMON SHARE (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Three Months Ended Nine Months Ended -------------------------- ------------------------- August 2, July 31, August 2, July 31, 1996 1995 1996 1995 ----------- ----------- ----------- ----------- Net earnings . . . . . . . . . . . . . . . . . . . . . $ 6,465 $ 4,027 $ 31,783 $ 28,365 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Primary: Shares of common stock and common stock equivalents: Weighted average number of common shares outstanding . . . . . . . . . . . . . . . . 12,108,554 12,270,005 12,183,841 12,591,164 Dilutive effect of outstanding stock options (1) . . . . . . . . . . . . . 398,235 440,202 424,403 499,037 ----------- ----------- ----------- ----------- 12,506,789 12,710,207 12,608,244 13,090,201 ----------- ----------- ----------- ----------- Net earnings per share of common stock and common stock equivalent . . . . . . . . $ 0.52 $ 0.32 $ 2.52 $ 2.17 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Fully Diluted: Shares of common stock and common stock equivalents: Weighted average number of common shares outstanding . . . . . . . . . . . . . . . . 12,108,554 12,270,005 12,183,841 12,591,164 Dilutive effect of outstanding stock options (2) . . . . . . . . . . . . . 398,235 458,282 424,403 512,895 ----------- ----------- ----------- ----------- 12,506,789 12,728,287 12,608,244 13,104,059 ----------- ----------- ----------- ----------- Net earnings per share of common stock and common stock equivalent . . . . . . . . $ 0.52 $ 0.32 $ 2.52 $ 2.17 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 1) Outstanding stock options and options exercised in the current period are converted to common stock equivalents by the treasury stock method using the average market price of the company's stock during each period. 2) Outstanding stock options and options exercised in the current period are converted to common stock equivalents by the treasury stock method using the greater of the average market price or the period-end market price of the company's stock during each period. -13-