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The termination ratio is a financial metric used to assess the proportion of a company's employees or contracts that have been terminated relative to the total number of employees or contracts. It provides insights into turnover rates and can indicate the effectiveness of management practices or the stability of the workforce. A high termination ratio may signal issues such as dissatisfaction, poor performance, or external market pressures. Conversely, a low ratio may reflect a stable work environment or effective retention strategies.

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