Which user group evaluates financial statements to determine the repayment of loans?

Lenders are the user group that evaluates financial statements to determine the repayment of loans because they need to assess the creditworthiness and financial stability of borrowers. Their primary concern is whether the borrower will be able to meet their repayment obligations. By analyzing financial statements such as the balance sheet, income statement, and cash flow statement, lenders can gain insights into the borrower's financial position, profitability, and cash flow situation. This information is critical for making informed decisions about loan approval and the terms of lending, including interest rates and repayment schedules.

In contrast, while investors may also analyze financial statements, their focus is on the potential for returns on their investment, rather than solely on the ability to repay loans. Employees typically look at financial statements to understand the overall health of the company and their job security, rather than for lending purposes. Government regulators primarily focus on compliance with laws and regulations rather than loan repayment analyses. Therefore, lenders are specifically interested in assessing the financial data concerning a borrower's ability to repay loans, which makes them the appropriate choice in this context.