At the beginning of the season, Real Madrid manager Carlo Ancelotti informed the media that it would only be a matter of time before his players settled in with the La Liga giants. Los Blancos’ boss believed that summer signings James Rodriguez and Toni Kroos would soon become comfortable with their new teammates and that his club would move forward following the departures of Xabi Alonso, Angel di Maria and Diego Lopez.

Madrid suffered a slight stumble out of the starting blocks when they opened the 2014-15 campaign by being defeated in the Spanish Supercopa by Atletico Madrid over two legs. Ancelotti’s men were able to shake off that loss by opening their La Liga schedule with a win over Cordoba, only to drop their next two league fixtures to Real Sociedad and Atletico Madrid.

The setback in Basque Country came after Real had staked themselves to an early 2-0 lead, before ultimately capitulating and allowing Real Sociedad to score for unanswered goals. Then a week later, the ten-time champions of Europe dropped a home decision to their Madrid rivals for the second time in two seasons.

Questions were being asked about their defending, the health and ‘happiness’ of their star man Cristiano Ronaldo; and the chemistry between the returning players and the club’s newest arrivals.

But Ancelotti disregarded the media hype and kept insisting that his club would come through…in time.

Well, it appears the time is now.

Real Madrid have hit their stride, which is bad news for the La Liga giants’ next two opponents: Liverpool and Barcelona.

Since their loss to Atletico Madrid in the Santiago Bernabeu on September 13th, Real Madrid have played seven matches in all competitions and have outscored their opponents 32-5. Los Blancos have scored five or more goals in a match five times this season and they have won their last five La Liga matches by a score of 25-2; including back-to-back 5-0 victories over Athetlic Bilbao and Levante.

Real’s defense, which had been the major question mark leading into the new season, has now kept clean sheets in three successive league matches.

Thus far, Ancelotti is mirroring the success he had with Real Madrid last season. The manager started off the 2013-14 campaign with some new faces and a new formation, but switched tactics shortly thereafter to get the most out of his squad. The Italian boss has done the same with this year’s version of his squad.

Another concern of Ancelotti’s heading into the new season was the form and fitness of the players who were returning from World Cup duty. But now, nearing the end of October, his organization and management of their fitness levels has left Ancelotti with nearly a full squad of ‘galacticos’ to choose from week-in and week-out.

Although the Real Madrid boss was recently handed some bad news when it was learned that Gareth Bale picked up an injury during international duty. Bale was an unused substitute during Madrid’s 5-0 over Levante this weekend and Ancelotti has decided not to include the Welshman in his 20-man squad which will travel to Anfield on Wednesday.

Defender Sergio Ramos will also miss the Champions League group stage encounter with Liverpool due to an injured calf.

Regardless of the recent injuries, Ancelotti has been pleased with the adjustments his new signings have made since their arrivals in Madrid.

There was concern early on that James Rodriguez wasn’t performing to the levels expected and may not fit into his new role on the right side of the pitch. The Colombia international sparkled over the summer as a number 10 and looked out of sorts during his first few appearances with Madrid.

But in recent weeks, James’ performances have really improved and his comfort with his new role is noticeable to those who have watched Madrid in La Liga. He is tracking back as much as he is running forward and assisting goals.

Toni Kroos has assumed the responsibilities of Xabi Alonso and has performed well in the role of holding midfielder.

Aside from the new signings, Ancelotti asked Isco to defend more and increase his influence on Madrid’s attack; and the 22-year-old attacking midfielder has performed to his highest levels in recent times.

And of course there is Cristiano Ronaldo.

After rumors surfaced of a disagreement between the reigning Ballon d’Or winner and Real Madrid president Florentino Perez, as well as speculation of his ‘happiness’ at the club and a possible return to Manchester United and public concern that injuries were staring to take a toll on the forward’s body.

But Ronaldo pledged his loyalty to the club and has spearheaded Real’s season to this point. The Portugal international broke a La Liga record and now has 15 goals in his first eight domestic matches.

Ancelotti rested Ronaldo for much of the pre-season and eased the 29-year-old forward into the lineup at the start of the season in order to allow his body time to recover from a busy 2013-14 campaign. All of which has seen Ronaldo return to the levels he has performed at since his arrival in Spain during the 2009-10 season.

Yes, it is still very early in the season. But Real Madrid are clicking and have hit performance levels which have been unmatched by many teams in Europe.

Not the news Liverpool fans would want to hear heading into their Champions League encounter on Wednesday night in Anfield; or Barcelona supporters as their side prepare to face-off in the latest version of ‘El Clasico’ at the Santiago Bernabeu this weekend (October 25th).

[Programming note: Liverpool v. Real Madrid will be shown LIVE at 2:45pm EST on FOX Sport 1, ESPN Deportes and Fox Soccer 2Go on Wednesday]