Kinematic structure of planar mechanisms addresses the study of attributes determined exclusively by the joining pattern among the links forming a mechanism. The system group classification is central to the kinematic structure and consists of determining a sequence of kinematically and statically independent-simple chains which represent a modular basis for the kinematics and force analysis of the mechanism. This article presents a novel graph-based algorithm for structural analysis of planar mechanisms with closed-loop kinematic structure which determines a sequence of modules (Assur groups) representing the topology of the mechanism. The computational complexity analysis and proof of correctness of the implemented algorithm are provided. A case study is presented to illustrate the results of the devised method.