A network diagnostic device is provided, which comprises a passive real-time measurement tool that is useful for, among other things, expediting fault identification, isolation, and repair of a communication network or bus. The device also facilitates prediction of failures by identifying marginal operating conditions. The device analyzes data flowing through the communication network, including through an analysis of variations in bit waveform shape carried by the network physical interconnect media. In one embodiment, an implementation of the network diagnostic device is particularly useful in a DeviceNet-compatible network or, more generally, a Controller Area Network (CAN). The device identifies faults by comparing measurements made on the actual DeviceNet bus with worst-case acceptable criteria. The device interfaces with a remote monitoring computer via an Ethernet compatible medium to display parsed bit-level waveforms, network warnings and errors, as well as an overall network health index.