<PAGE>
 
                          A.S.V., INC. AND SUBSIDIARY
                 EXHIBIT 11 - COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
 
                                                          Three Months Ended          Six Months Ended
                                                                June 30,                  June 30,
                                                         ------------------------  ----------------------
                                                             1997         1996        1997        1996
                                                         -----------  -----------  ----------  ----------
<S>                                                       <C>         <C>          <C>         <C> 
PRIMARY EARNINGS PER SHARE                                            
 Earnings                                                             
  Net income                                              $  464,893   $  175,061  $  780,435  $  328,057
                                                                      
  Add after tax interest expense applicable                           
   to 6.5% convertible debentures                             50,375            -     100,750           -
                                                          ----------   ----------  ----------  ----------
  Net income applicable to common stock                   $  515,268   $  175,061  $  881,185  $  328,057
                                                          ==========   ==========  ==========  ==========
                                                                      
 Shares                                                               
  Weighted average number of common                                   
   shares outstanding                                      4,831,767    4,775,727   4,829,082   4,769,793
                                                                      
  Assuming exercise of options and warrants                           
   reduced by the number of shares which could                        
   have been purchased with the proceeds from                         
   the exercise of such options and warrants                 647,921      441,492     665,294     384,477

  Assuming conversion of 6.5% convertible                             
   debentures                                                454,545            -     454,545           -
                                                          ----------   ----------  ----------  ----------
  Weighted average number of common and                               
   common equivalent shares outstanding                    5,934,233    5,217,219   5,948,921   5,154,270
                                                          ==========   ==========  ==========  ==========
                                                                      
 Earnings per common share                                $      .09   $      .03  $      .15  $      .06
                                                          ==========   ==========  ==========  ==========
</TABLE>
<PAGE>
 
                          A.S.V., INC. AND SUBSIDIARY
                 EXHIBIT 11 - COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
 
 
                                                    Three Months Ended        Six Months Ended
                                                         June 30,                June 30,
                                                  ----------------------  ----------------------
                                                     1997        1996        1997        1996
                                                  ----------  ----------  ----------  ----------
<S>                                               <C>         <C>         <C>         <C> 
FULLY DILUTED EARNINGS PER SHARE                                                      
 Earnings                                                                             
  Net income                                      $  464,893  $  175,061  $  780,435  $  328,057
                                                                                      
  Add after tax interest expense applicable                                           
   to 6.5% convertible debentures                     50,375           -     100,750           -
                                                  ----------  ----------  ----------  ----------
  Net income applicable to common stock           $  515,268  $  175,061  $  881,185  $  328,057
                                                  ==========  ==========  ==========  ==========
 Shares                                                                               
  Weighted average number of common                                                   
   shares outstanding                              4,831,767   4,775,727   4,829,082   4,769,793

  Assuming exercise of options and warrants                                           
   reduced by the number of shares which could                                        
   have been purchased with the proceeds from                                         
   the exercise of such options and warrants         794,611     491,532     738,639     410,934

  Assuming conversion of 6.5% convertible                                             
   debentures                                        454,545           -     454,545           -
                                                  ----------  ----------  ----------  ----------
  Weighted average number of common and                                               
   common equivalent shares outstanding            6,080,923   5,267,259   6,022,266   5,180,727
                                                  ==========  ==========  ==========  ==========
 Earnings per common share                        $      .09  $      .03  $      .15  $      .06
                                                  ==========  ==========  ==========  ==========
</TABLE>