These are called as Page rank or simply PR, named after the Google team member Larry Page. It usually means the reputation of that particular website according to Google. The higher the page rank the higher the reputation of that website.
Page rank depends heavily on the Crawl rate and number of inbound(links pointing towards the website) and outbound links(the links pointing out from website to other web pages) of a particular website.
If a website has inbound links from some high PR website then the PR of those website will be shared between the linking websites according to algorithm provided by Google. If you are having more outbound links that inbound links then there are less chances of your website getting a high PR.
It's just a measure though, it doesn't certifies that a particular website is good or not.
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