EXHIBIT 11.1

                             CALLAWAY GOLF COMPANY
                       COMPUTATION OF EARNINGS PER SHARE
                     (in thousands, except per share data)


                                                                               
                                                      Three months ended               Nine months ended
                                               ------------------------------   ----------------------------- 
                                                September 30,   September 30,   September 30,   September 30,
                                                    1997            1996            1997            1996
                                               --------------   -------------   -------------   -------------
                                                                                     
Primary earnings per share computation:                                                       
- - ---------------------------------------                                                       
  Net income                                       $37,049         $38,418        $108,337        $96,810 
                                                   =======         =======        ========        =======
                                                                                            
  Weighted average shares outstanding               68,704          67,128          68,085         66,624 
  Dilutive options                                   2,944           3,937           3,297          3,766 
                                                   -------         -------        --------        -------
  Common equivalent shares                          71,648          71,065          71,382         70,390
                                                   =======         =======        ========        ======= 
                                                                                            
Primary earnings per share:                                                                 
  Net income                                          $.52            $.54           $1.52          $1.38
                                                      ====            ====           =====          ===== 
                                                                                            
Fully diluted earnings per share computation:                                               
- - ---------------------------------------------                                               
  Net income                                       $37,049         $38,418        $108,337        $96,810
                                                   =======         =======        ========        ======= 
                                                                                            
  Weighted average shares outstanding               68,704          67,128          68,085         66,624 
  Dilutive options                                   2,946           4,052           3,383          4,051 
                                                   -------         -------        --------        -------
                                                                                            
  Common equivalent shares                          71,650          71,180          71,468         70,675
                                                   =======         =======        ========        ======= 
                                                  
Fully diluted earnings per share:
  Net income                                          $.52            $.54           $1.52          $1.37
                                                      ====            ====           =====          =====