Final answer:
XYZ Company's acid-test ratio of 1.65 suggests good liquidity, as it is above 1, indicating the ability to cover short-term liabilities. However, without industry ratios for comparison, a complete analysis cannot be made.
Step-by-step explanation:
To analyze XYZ Company's liquidity, we need to understand the acid-test ratio as it compares to the industry standard. The acid-test ratio, also known as the quick ratio, measures a company's ability to cover its short-term liabilities with its most liquid assets (cash, marketable securities, and accounts receivable). An acid-test ratio of 1 or higher is generally considered satisfactory as it indicates that the company could quickly liquidate assets to pay off its current liabilities if necessary.
In this case, XYZ Company has an acid-test ratio of 1.65. Without the industry standard for comparison, we can say that XYZ Company's ratio is above 1, which suggests that the company is in a good liquidity position. However, the industry acid-test ratio and industry current ratio were not provided, which are important for a comparative analysis. Generally, if XYZ's ratio is higher than the industry average, it implies the company is better positioned than its competitors to meet short-term obligations.