What is the significance of the `return` statement in C functions?

The significance of the return statement in C functions lies primarily in its role to exit the function and optionally provide a value back to the calling function. When a return statement is executed, control is transferred back to the location from which the function was called. If the function is expected to return a value, that value can be specified in the return statement. This facilitates the transfer of information from the function back to the caller, enabling feedback about the operation performed or the results computed within the function.

In terms of function design, the return statement helps establish clear endpoints for function execution, allowing for better modular programming and control flow management. It ensures that once a value is returned, any subsequent code within the function will not be executed.

Understanding this concept is crucial for effective programming in C, as it impacts how functions interact and communicate with each other, especially in larger programs where functions may rely on the results returned by others to proceed with their processing tasks.