I read a paper talking about the Operating Cycle. On page 6th, they said:
Sales of assets, no matter how disguised, are one-time events. In contrast, cycling capital through the cycle and generating cash contribution margins from operations hopefully is a repeatable event and the event of economic consequences that justifies the existence of a firm. It is the well of economic returns
From my understanding, sales of assets above mean that the company sells the timber, or oil, or cash equivalents, and they are one-time events. Then,"cycling capital through the cycle" means dollar leaves cash and go through other asset account, and $1.05 comes back into cash after a number of days. Then "contribution margins" means selling price per unit minus variable cost per unit.
I am wondering why they hope it is a repeatable event, and what does "event of economic consequences" mean in this sentence?