Working capital refers to assets that are used up or converted into cash within a year, such as raw materials and fuel. Fixed capital consists of durable assets that are used repeatedly in the production process, like machinery and buildings. A farmer's plough is a durable asset used in production, hence fixed capital. Yarn used by a weaver is a raw material consumed in the production process, thus working capital. Petrol used by a vehicle is a consumable, representing working capital.