The purpose of this study is to determine the impact of diversification and financial leverage on corporate's financial performance simultaneously as well as partially. The Herfindahl Index (HERF) will be used as a proxy of diversification, Debt Ratio (DR) and Debt to Equity Ratio (DER) will be used as proxy of financial leverage, while corporate's financial performance will be measured by Return on Equity (ROE). Thus, independent variables on this research are HERF, DR and DR, while dependent variable is ROE. This research uses secondary data which is obtained from www.idx.co.id. Sampling method used on this research is purposive sampling, which outcome is 12 companies selected out from 15 companies listed on the Food and Beverages Sector in Indonesia Stock Exchange during the period of 2012-2014. The F-test result shows that Herfindahl Index (HERF), Debt Ratio (DR), and Debt to Equity Ratio (DER) affects Return on Equity (ROE) simultaneously. While t-test result shows that partially Herfindahl Index and Debt Ratio affects Return on Equity significantly, yet Debt to Equity Ratio does not affect Return on Equity.