Current assets current liabilities are very crucial elements in determining the financial performance of an organization. The purpose of this study was to investigate the effect of current assets and current liabilities and its relationship with the performance of the British American Tobacco company. Data on financial performance was obtained from the financial statements of the British American Tobacco company. More data was obtained from secondary sources of information such as journals and magazines. Cash, current assets and current liabilities will provide information which was used to determine the working capital of the company and we measured performance by determination of the returns on assets and returns on equity. Correlation and regression methods of data analysis were used with respect to the data obtained. Among the recommendations is that in order for manufacturing firms to survive during these harsh economic times, financial managers need to come to speed and apply their working capital skills effectively. Also, the management should also ensure that operations are done with minimum cost but maintain required standards so as to meet the market and also to avoid piling up of current assets such as stock and cash.