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Strength difference (not ratio) is what determines losses on both sides. For example if units are equal in strength (with all modifiers applied) then combat losses will be around 25-30 health on both sides. If you have +10 strength comparing to enemy then you'll do like 45 damage and get like 18 losses.
There is random factor in the calculations as well. Fo example I observed several battles with +5 strength and damage dealt was in range 30..41.
How this is exactly calculated is unclear to me.
When I first noticed that forest tile or hills gives barely +3 strength I was surprised - does it make difference when I use high tech units with strength around 100? The answer is that with +5 advantage you'll do like +50% more damage than enemy does to you. +10 gives like +100% advantage. So +3 makes sense as well.
Some modifiers:
Damaged unit gets -1..-10, depending how much health it lost.
Flank/support bonus: +2 for each additional (friendly/enemy) unit adjacent to target unit
Random factor is quite big. So graphical representation of losses (when you highlight an enemy unit before attack) is just an approximation. Real losses are unknown.