Cholesterol performs essential functions in the body and is synthesized in the liver and intestines. The liver plays a central role in regulating blood cholesterol levels. Half of the body's cholesterol comes from synthesis, while the remainder comes from diet. Cholesterol is used to make bile acids, steroid hormones like cortisol and aldosterone, vitamin D, and is incorporated into cell membranes. Bile acids help emulsify fats and are recycled through enterohepatic circulation. Statins work by inhibiting HMG-CoA reductase, an enzyme involved in cholesterol synthesis but also the production of other important compounds.