Can you help me understand the balance sheet section of Jim Cramer's Mad Money book?

On page 39 of Jim Cramer's "Mad Money" book, Jim Cramer is talking about the balance sheet of CAT back in 2005. CAT had $10 billion of debt due in the next 12 months. He says that although their current debt due is more than 3 times the size of its operating cash flow, CAT is in a position to refinance and ultimately pay off that debt. "If you look at the FINANCING ACTIVITIES section of the cash-flow statement, you'll see that people are still willing to loan CAT money."


What does he mean "people are still willing to loan CAT money?" What is he looking at? Is he looking at the "Net Borrowings" under Financing Activities? What change on the balance sheet year to year indicate people are still willing to loan a company money?|||It won't really show on the balance sheet. Net borrowings is the correct item to look at, and it is on the cash flow statement. Actually, you should see detail of this on most CF statements that will show funds received and funds paid to retire long term debt. Seeing funds received would indicate somebody is willing to loan the corporation money, and seeing a large amount, or an amount offsetting the amount used to retire debt, would indicate an ability to refinance. This is because the statement is showing evidence that the funds the company received were used to pay off previous debt. On the balance sheet this would not show since only debt owed is displayed. For example if a $100M loan is refinanced, it will show as $100M at the end of last year and $100M this year. The transaction will not appear in the balance, only in the activity shown of the cash flow statement.