---
entity_slug: common_annual_profits_of_manufacturing_stock
evaluator: null
evaluated_at: '2026-02-23T05:00:34.177084'
overall_score: 4.2
scores:
- name: definition_precision
  value: 4.0
  max_value: 5.0
  rationale: The definition clearly distinguishes this as a rate of return on manufacturing
    capital specifically, expressed as a percentage, which is precise and non-circular.
    It could be slightly more precise about the time period and risk factors involved.
- name: source_grounding
  value: 5.0
  max_value: 5.0
  rationale: This concept is directly grounded in Smith's Book I, Chapter 6, where
    he explicitly discusses how profits relate to capital employed rather than labor
    supervision, using manufacturing examples. The entity accurately reflects Smith's
    actual analysis rather than imposing modern interpretations.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: '"Distribution" is the correct domain placement, as this concept deals
    with how returns are distributed to capital owners in the manufacturing sector.
    This aligns perfectly with classical economic analysis of factor returns.'
- name: vsm_relevance
  value: 3.0
  max_value: 5.0
  rationale: This entity has moderate VSM relevance, primarily relating to S3 (internal
    regulation) as it represents a performance metric for capital allocation decisions.
    However, it's somewhat abstract and doesn't clearly map to operational VSM functions.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: This entity provides genuine explanatory power by illuminating the mechanism
    of how capital returns are determined independently of labor supervision in manufacturing.
    It helps explain the structural relationship between capital investment and profit
    expectations in Smith's framework.
---

# Evaluation: Common Annual Profits Of Manufacturing Stock

## definition_precision — 4.0 / 5.0

The definition clearly distinguishes this as a rate of return on manufacturing capital specifically, expressed as a percentage, which is precise and non-circular. It could be slightly more precise about the time period and risk factors involved.

## source_grounding — 5.0 / 5.0

This concept is directly grounded in Smith's Book I, Chapter 6, where he explicitly discusses how profits relate to capital employed rather than labor supervision, using manufacturing examples. The entity accurately reflects Smith's actual analysis rather than imposing modern interpretations.

## domain_placement — 5.0 / 5.0

"Distribution" is the correct domain placement, as this concept deals with how returns are distributed to capital owners in the manufacturing sector. This aligns perfectly with classical economic analysis of factor returns.

## vsm_relevance — 3.0 / 5.0

This entity has moderate VSM relevance, primarily relating to S3 (internal regulation) as it represents a performance metric for capital allocation decisions. However, it's somewhat abstract and doesn't clearly map to operational VSM functions.

## explanatory_value — 4.0 / 5.0

This entity provides genuine explanatory power by illuminating the mechanism of how capital returns are determined independently of labor supervision in manufacturing. It helps explain the structural relationship between capital investment and profit expectations in Smith's framework.
