Apr. 22 at 4:30 PM
$EVH Using the Altman Z-Score, which combines profitability, leverage, liquidity, and retained earnings to assess financial distress risk, Evolent Health currently screens deep in the distress zone with a score of roughly –3.06 using GAAP EBIT. Even when substituting normalized (adjusted) EBIT, the score improves to only about –1.3 to –1.5, still well below the 1.1 distress threshold and far from the 2.6+ safe zone. This matters for investors because such low scores indicate elevated financial risk driven by negative retained earnings and a weak equity cushion relative to liabilities, increasing the likelihood of dilution, restructuring, or continued volatility—making the stock a more speculative, turnaround-dependent investment rather than a financially stable one.
