It should not be a trivial matter for a squad to suffer massive casualties and easily maintain good morale status. Nickel-and-diming a squad to death should kill morale as surely as individually lethal attacks. Due to an idiosyncracy of the Stargrunt II morale check resolution process, it is not infrequently that you see squads whittled slowly down to one or two members while retaining very high levels of morale and combat readiness. Whereas this is possible, it should not occur with anywhere near the frequency it does in the existing morale rules. The modifiers proposed below, if applied to the existing morale tests to account for accumulating losses, will help to address this idiosyncratic behaviour.

Note that the % losses in the chart below are with respect to the original full-squad figure counts.