Financial Analysis: Carefully analyze whatever financial information is offered using the appropriate ratios. Summarize what you discover with a narrative that tells what the numbers say about the financial health of the company.

The Market for Endurance Sports The origins of endurance sports can be traced to the introduction of the modern marathon race in 1896, the triathlon in the 1920s, orienteering in the 1930s, and the first Ironman triathlon in 1974. In recent years, a number of new endurance sports have appeared, including: adventure races-off-road, triathlon-based events which typically include trekking/orienteering, mountain biking, and paddling; obstacle mud runscross-country running events with a variety of challeng- ing obstacles; novelty eventsfun events such as 5K races in which competitors are doused in paint (Color Run), running with real bulls (Great Bull Run), and food fights (Tomato Royale). Tough Mudder used several strategic variables to map the market and position the different products (Figure 1). Obstacle mud runs were initiated in the UK in 1987 with the annual Tough Guy race organized by ex-British soldier Billy Wilson (which provided the inspiration for Tough Mudder). In the US, Warrior Dash launched in July 2009, followed by Tough Mudder and Spartan Races in May 2010. A flood of new entries followed. During 2011-2013, new entrants included: Mud Mingle, Play Dirty Adventure Runs, Dirty Girl, Mudslayers, Gritty Goddess Runs, Alpha Warrior, Big Nasty Mud Run, Survival Race, Udder Mud Run, Fugitive Mud Run, Hot and Dirty Mud Run, and many more. During 2013, there were 3.4 million participants in US obstacle mud runs paying a total of $290.1 million. By comparison, triathlons attracted about two million participants in 2013. In 2013, close to 350 organizations offered obstacle mud runs. The surging popularity of mud runs pointed to the desire of the young (and not so young) to turn away from video screens and virtual experiences and test their physi- cal and mental limits in the Great Outdoors. FIGURE 1 The market for endurance sports Collaborative Unconventional Color Run Tough Mudder Tough Mudder Spartan Races Warrior Dash Low risk High risk Brand-led Activity-led event event Color Run Warrior Dash Ironman Spartan Races Marathons Marathons Ironman Competitive Traditional FIGURE 2 Tough Mudder: Growth 20102015 70 No. of events Participants (tens of thousands) 60 50 40 30 20 10 0 2010 2011 2012 2013 2014 2015 Note: Participant numbers are case writer's estimates. Data for 2015 are projections. and close attention to social media. Tough Mudder continually sought clues as to how it might make improvements that would allow it to match the energy, determination, and gung-ho spirit of the participants. Continuous development of obstacles and course design involved generat- ing ideas for new obstacles while on retreats, developing and testing pro- totypes at the Brooklyn HQ, and learning from participant experiences. Tough Mudder continually increased its investment in product development with new and improved obstacles announced each year. In January 2015, Tough Mudder announced that its entire obstacle menu has been revamped including ten exhilarating new obstacles, 2.0 versions of its classic chal- lenges, and off-course Mudder Village obstacles for participants and specta- tors to experience. Efforts to extend brand leadership focused heavily on social media and maxi- mizing traffic to Tough Mudder's website, but also included extensive out- reach to the online and print media. Partnering Partnering with other organizations has been a central feature of Tough Mudder's growth. Its partnerships have been important for building market momentum, pro- viding resources and capabilities that Tough Mudder lacked, and generating addi- tional sources of revenue. Since its inaugural run in 2010, Tough Mudder has been an official sponsor of the Wounded Warriors Project, a charity that offers support to wounded veterans. The relationship reinforces Tough Mudder's military associations and helps legitimize Tough Mudder's image of toughness, resilience, and bravery. Military connections were further reinforced by sponsorship from the US Army Reserve, which viewed Tough Mudder events as an opportunity for promotion and recruitment. The Market for Endurance Sports The origins of endurance sports can be traced to the introduction of the modern marathon race in 1896, the triathlon in the 1920s, orienteering in the 1930s, and the first Ironman triathlon in 1974. In recent years, a number of new endurance sports have appeared, including: adventure races-off-road, triathlon-based events which typically include trekking/orienteering, mountain biking, and paddling; obstacle mud runscross-country running events with a variety of challeng- ing obstacles; novelty eventsfun events such as 5K races in which competitors are doused in paint (Color Run), running with real bulls (Great Bull Run), and food fights (Tomato Royale). Tough Mudder used several strategic variables to map the market and position the different products (Figure 1). Obstacle mud runs were initiated in the UK in 1987 with the annual Tough Guy race organized by ex-British soldier Billy Wilson (which provided the inspiration for Tough Mudder). In the US, Warrior Dash launched in July 2009, followed by Tough Mudder and Spartan Races in May 2010. A flood of new entries followed. During 2011-2013, new entrants included: Mud Mingle, Play Dirty Adventure Runs, Dirty Girl, Mudslayers, Gritty Goddess Runs, Alpha Warrior, Big Nasty Mud Run, Survival Race, Udder Mud Run, Fugitive Mud Run, Hot and Dirty Mud Run, and many more. During 2013, there were 3.4 million participants in US obstacle mud runs paying a total of $290.1 million. By comparison, triathlons attracted about two million participants in 2013. In 2013, close to 350 organizations offered obstacle mud runs. The surging popularity of mud runs pointed to the desire of the young (and not so young) to turn away from video screens and virtual experiences and test their physi- cal and mental limits in the Great Outdoors. FIGURE 1 The market for endurance sports Collaborative Unconventional Color Run Tough Mudder Tough Mudder Spartan Races Warrior Dash Low risk High risk Brand-led Activity-led event event Color Run Warrior Dash Ironman Spartan Races Marathons Marathons Ironman Competitive Traditional FIGURE 2 Tough Mudder: Growth 20102015 70 No. of events Participants (tens of thousands) 60 50 40 30 20 10 0 2010 2011 2012 2013 2014 2015 Note: Participant numbers are case writer's estimates. Data for 2015 are projections. and close attention to social media. Tough Mudder continually sought clues as to how it might make improvements that would allow it to match the energy, determination, and gung-ho spirit of the participants. Continuous development of obstacles and course design involved generat- ing ideas for new obstacles while on retreats, developing and testing pro- totypes at the Brooklyn HQ, and learning from participant experiences. Tough Mudder continually increased its investment in product development with new and improved obstacles announced each year. In January 2015, Tough Mudder announced that its entire obstacle menu has been revamped including ten exhilarating new obstacles, 2.0 versions of its classic chal- lenges, and off-course Mudder Village obstacles for participants and specta- tors to experience. Efforts to extend brand leadership focused heavily on social media and maxi- mizing traffic to Tough Mudder's website, but also included extensive out- reach to the online and print media. Partnering Partnering with other organizations has been a central feature of Tough Mudder's growth. Its partnerships have been important for building market momentum, pro- viding resources and capabilities that Tough Mudder lacked, and generating addi- tional sources of revenue. Since its inaugural run in 2010, Tough Mudder has been an official sponsor of the Wounded Warriors Project, a charity that offers support to wounded veterans. The relationship reinforces Tough Mudder's military associations and helps legitimize Tough Mudder's image of toughness, resilience, and bravery. Military connections were further reinforced by sponsorship from the US Army Reserve, which viewed Tough Mudder events as an opportunity for promotion and recruitment