Net margin, measuring how much net income is generated as a percentage of revenue, would be the first ratio to measure (Sagner, 2014). In 2018, JP Morgan Chase had a net margin of 28.17%. If expenses were to rise due to increased interest with borrowing, while revenues declined due to less loans being originated and potential defaults, JP Morgan Chase would see a decrease in this number. This would suggest that it is able to generate less net income per dollar of sales, potentially signaling investors that it is less profitable during these times. Next, return on equity measures company performance and how effectively management is making profits utilizing assets (Sagner, 2014). JP Morgan Chase had a return on equity of 13.35% in 2018. With this scenario, decreasing net income would result in decreasing return on equity. This result may sway investors toward a different investment that provides them with a better return. Next, JP Morgan Chase should measure the potential effect these changes will have on its financial leverage ratios. Its debt-to-equity ratio measures the financial risk by determining how much debt is used to finance operations using by comparing total liabilities to shareholders equity (Sagner, 2014). For the year of 2018, JP Morgan Chase had a debt to equity ratio of 9.22 based on its 2018 10K. With an increase in interest rates, JP Morgan Chase will see an increase in liabilities due to increased deposit liabilities within its balance sheet. An increase of this ratio would suggest that it is more financed by its creditors than internally. Lastly, JP Morgan Chase should consider what impact this may have on its interest coverage ratio. This ratio depicts how well JP Morgan Chase will be able to cover its interest expense given its earnings before income taxes (Sagner, 2014). JP Morgan Chase had an interest coverage ratio of 2.54 in 2018. Although this is offset by the interest income, any change in interest rates paid out would affect this, bringing the interest coverage ratio lower which is not an ideal sign for creditors (Sagner, 2014)