A device and method for detecting and analyzing faults in a generator stator are disclosed. The device and method include measuring a direct current component of a neutral ground current in a generator stator grounding conductor, analyzing the direct current flow and comparing it with other ground fault indicators, and providing diagnosis and recommended actions based on the analysis. The direct current flow is measured by a sensitive direct current sensor that may also measure AC components via oscillations in the current measurement, such as a Hall Effect sensor, placed on the generator stator grounding conductor. The analysis of the direct current signal includes consideration of the generator operating conditions and environmental conditions, and also includes comparison to historical data representing both normal and abnormal operation of the generator. Alarms and advisories are provided when generator faults are detected or predicted.