The applicability of heat generation data obtained after cylindrical Li-ion cells discharging with a constant current was analyzed thoroughly to determine cell degradation mechanisms. Different commercial and noncommercial cylindrical Li-ion cells, wherein graphite was used for negative electrode creation, were considered in this study and the degradation mechanisms were analyzed during cycling and storage. The heat generation in the cylindrical cells was estimated using heat flux and temperature measurements of the cell surface. The results obtained using analysis of the heat generation data were compared with those obtained using differential voltage analysis. The use of the heat generation data was shown to improve the detection and separation of the degradation mechanisms in Li-ion batteries during cycling and storage. The differential curve, which is based on the heat generation data, was proposed to investigate the degradation mechanisms. Moreover, the effects of the C-rate current and temperature on the form of the proposed differential curve were evaluated.