Cholesterol is essential for health. At least two-thirds of your body cholesterol is produced by the liver or in the intestine. It is found in the brain, the adrenals, and nerve fiber sheaths and when it is good, it's very good. Cholesterol in the skin is converted to essential vitamin D when touched by the sun's ultraviolet rays. Cholesterol aids in the metabolism of carbohydrates. The more carbohydrates ingested, the more cholesterol produced. Cholesterol is a prime supplier of life-essential adrenal steroid hormones, such as cortisone. Cholesterol is a component of every membrane and necessary for the production of male and female sex hormones.