1.Working capital is defined as the amount of capital that is required by the company for financing daily business operations and is therefore calculated by taking a difference between current assets and current liabilities (Kasiran et al., 2016). 2.Current assets are defined as short-term assets of the company that can be quickly liquidated to meet the immediate needs of the company. Examples of current assets are cash, account receivable, prepaid expenses, inventory, etc. They are also defined as assets that are expected to be turned into cash within one year. 3.Current liabilities are defined as the debt that is owed by the company and is due to be payable within one financial year. Examples include creditors, bank overdrafts, short-term loans, etc.