The internet speed test starts by identifying the network server that is closest to you. You will see the name in the lower right-hand corner of the testing window.
A "packet" of information is sent from your device to the server and back. The amount of time it takes for that information to make the trip is your ping. Next, the speed test downloads and uploads a packet of data over that connection. How quickly your internet can transfer that data from the network to your device and from your device back to the network determines your download and upload speed.
This speed is measured to and from the device you are using to run the test, which means the type of connection has a big impact on the result. Speed to your device may vary greatly depending on whether you have a wired or WiFi connection. Over a WiFi connection, speed to your device may vary greatly depending on how close your device is to your WiFi point, as well as any obstructions or distance in between. On the other hand, a wired (Ethernet) connection from the device straight to the modem will be about the same as the network speed to your home or building.