The accurate measurement of on-state device voltage during power-cycling tests can deliver important information about the health of the tested power electronics components. In this article, we present the major aspects of how a power-cycling test can be set up to enable high-resolution device voltage monitoring, during both heating and cooling stages, and discuss the effect of some important parameters on the arising failure modes. The thermal transient of the component can also be captured in these setups. We show how the structure functions calculated from the captured thermal transients can be used to reveal the location of degradation in the module structure. Finally, the method for identification of bond-wire cracking and lift-off using only the measured voltage curves, is shown.