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The debt-to-equity ratio is a financial metric that highlights the relationship between a company's total liabilities (debt) and its shareholders' equity. This ratio is instrumental in assessing a company's financial leverage and stability. By examining how much debt a company uses to finance its operations relative to its own equity, stakeholders can gain insights into the risk level associated with the company's capital structure. A higher debt-to-equity ratio may indicate a greater reliance on borrowed funds for growth and operations, potentially reflecting higher financial risk. Conversely, a lower ratio could suggest a more conservative approach, relying more on equity financing.

The other options provided do not accurately represent the purpose of the debt-to-equity ratio. The total amount of company assets is a different aspect of financial assessment that is not directly related to the debt-to-equity ratio. Current market value pertains to how the market values the company's equity but does not indicate the relationship between debt and equity. Cash flow compared to total debt represents a different analysis of liquidity and solvency, known as debt service coverage, rather than the leverage aspect captured by the debt-to-equity ratio.