We present a novel method for analysis of superconducting thin films using dynamic magneto-optical imaging, revealing hallmarks of flux penetration with temporal resolution around 1 ms (in the present work) or better. This method involves investigation of transient field and dynamic current distributions, which are calculated by an inversion procedure on the Biot-Savart Law, which we show to be valid under dynamic conditions. We compare and discuss the flux front penetration speed and evolution of current distribution in high quality YBa2Cu3O${}_{7-\delta }$ thin films with that of samples deliberately damaged in such a way as to reduce critical current density without causing macroscopic damage. We present a novel method for analysis of superconducting thin films using dynamic magnetooptical imaging, revealing hallmarks of flux penetration with temporal resolution around 1 ms (in the present work) or better. This method involves investigation of transient field and dynamic current distributions, which are calculated by an inversion procedure on the Biot-Savart Law, which we show to be valid under dynamic conditions. We compare and discuss the flux front penetration speed and evolution of current distribution in high quality YBa2Cu3O7−δ thin films with that of samples deliberately damaged in such a way as to reduce critical current density without causing macroscopic damage.